On May 9th, 2022, the stablecoin UST lost its peg to the dollar and collapsed. The Terra collapse wiped out over $40 billion worth of value in a single week. It sent shock waves throughout the cryptocurrency market. Terra is an algorithmic stablecoin that aims to maintain a peg to the US dollar.
A stablecoin is a cryptocurrency that is pegged to another currency, commodity or asset. The most widely used stablecoins are pegged to the US dollar. This means, one stablecoin should be worth $1. Stablecoins combine the digital and borderless nature of cryptocurrencies with the low volatility of traditional fiat currencies.
UST is an algorithmic stablecoin that is supposed to stay pegged to the US dollar at $1. This means, 1 UST should always be convertible into 1 USD. However, in recent days, the stablecoin broke its peg and plunged to $0.14, losing its parity and wiping out over 85% of its value.
The blocksize war was a battle for control over Bitcoin’s protocol rules that took place between 2015-2017. The blocksize war consisted of two camps. The small blockers wanted to keep Bitcoin’s block size small. The large blockers, on the other hand, pushed for an increase in Bitcoin’s block size.
Cryptocurrency is a recent phenomenon that started around ten years ago. After Bitcoin was invented, several altcoins appeared on the scene including Namecoin and Litecoin. These altcoins promised improvements such as faster payments and scalability, and sometimes alternative use cases such as decentralizing existing internet services.
With the rise of Bitcoin, central banks all around the world are facing the inevitable digitization of money. Many central banks have started developing their own Central Bank Digital Currency (CBDC), including the European Central Bank, the Bank of the People’s Republic China and the Central Bank of Indi
Facebook recently renamed their company to Meta. This move comes in light of a broader vision to build the future of the metaverse.