Tech

Crypto crash: Stablecoin collapse sends tokens tumbling

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Posted: 13/05/22 - 11:19
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Crypto-currency markets are being rocked after a popular token lost 99% of its value, dragging down a so-called "stablecoin" with it.

The Terra Luna token fell from a high of $118 (£96), last month, to $0.09 on Thursday.

The collapse had a knock-on effect on a linked token, TerraUSD, which is normally stable.

And spooked investors are now pulling out of major crypto-currencies, sending markets plummeting.

The companies behind stablecoins try to ensure they remain in parity with assets such as the US dollar - with one token equalling $1, for example.

But on Thursday TerraUSD fell to $0.4 according to the trading website Coin Market Cap.

Tether, the most popular stablecoin, also fell off its US dollar peg - to an all-time low of $0.95.

I Call True: I can personally say that Crypto investments are a total **** show right now and doesn't look like improving any time soon

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3 Comments
13 days
3 upvotes
I guess this shows how unstable and unpredictable the crypto market can be.
14 days
3 upvotes
Luna continues to fall but green arrows throughout the rest of the market today thankfully. Hopefully 2018 will repeat itself here.
14 days
2 upvotes
Like pretty much all investments they have taken a dive but some of these 'dives' are shocking