On May 13, Terra’s UST algorithmic stablecoin slumped as low as 23 cents, and the LUNA token, created to prevent the UST algorithmic stablecoin from being volatile, fell 96% at one point. An algorithmic stablecoin is one that in theory maintains its peg using only software and rules, meaning it is not necessarily backed by collateral. Instead, the token’s programming, or smart contract, can increase supply if the price is falling or reduce supply if the price is increasing.
Related posts
-
Embattled FTX Co-Founder Gary Wang Is Building US Authorities a Tool To Track Illicit Activity on Crypto Exchanges
FTX co-founder and former CTO Gary Wang continues to work with US authorities after giving his... -
Bitcoin Open Interest Soars As Top Crypto Breaks $76,000
They say journalists never truly clock out. But for Christian, that’s not just a metaphor, it’s... -
Meme Coins Explode as Trump Wins Bitcoin Election
Crypto traders rejoiced as pro-Bitcoin candidate Donald Trump won the US Presidential election in 2024, leading...