Stablecoins exist for the faint of heart who want to reduce their exposure to volatile crypto assets and peg their holdings to the US dollar without removing their capital from the digital sphere.because regulators envisage consequences in the real monetary world if something goes wrong., which has amassed a market capitalisation – for lack of a better description – of $US95 billion.
Confronted with the reality that what they thought was an investment as good as cash was, in fact, at risk, they withdrew funds. Terra is a little different, though. It is an algorithmic stablecoin, which means it’s not actually backed by assets. Rather, its stable value is maintained through programmatic transactions in which USTs are sold when their value is above $US1 and bought when it’s trading below, using another coin called Luna.
And George Soros’ famous 1992 raid on the British pound exploited the unsustainability of a peg in the face of hard economics and a wall of speculative capital.
Tulips
nothing new …. every 4 years this happens … only people i feel sorry for are the get rich quick people who believe and fall for the fake news ,scammers and invest in something they have no idea about …