#cryptocurrency regulation

The crash of "stablecoin" TerraUSD (UST) and LUNA, backed by the largest algorithmic stablecoin platform Terra, took the global cryptocurrency market by storm. It did not seem to help that the current cryptocurrency trend is in the declining phase. This concise article attempts to make sense of what some would like to compare as the "global financial crisis moment" of cryptocurrency. Introduced in 2019 by Evan Kereiakes, Do Kwon, Marco Di Maggio, and Nicholas Platias, Terra's promise was to be a "price-stable and growth-driven" cryptocurrency. As defined by Coindesk, what backs them is an on-chain algorithm that facilitates a change in supply and demand between the stablecoin and another cryptocurrency that acts as security. In this case, what props the stablecoin UST is the native Terra cryptocurrency LUNA. It must be remembered that not everyone can afford the risk of losses, especially in a cryptocurrency market. The government and central bank of Russia are now working on a draft law that will treat cryptocurrency as an “analogue of currencies” rather than digital financial assets. Read more in our articles including "Crypto Explainer: Why LUNA and UST crashed?" and "Russian gov’t, central bank to regulate cryptocurrencies".