shiba TREAT coin 1000x600 1 Crypto Market Loses $48B After Collapse, Calls for More Launches

Crypto Market Loses $48B After Collapse, Calls for More Launches

-In May, terraUSD, a so-called algorithmic stablecoin broke its dollar peg, causing a run. Within the space of a week, investors were out $48 billion.

-The problem was that instead of the one-to-one reserve of dollars and highly liquid investments like short-term treasuries used by competitors including Circles USDC and Tethers USDT, the Terra/LUNA stablecoin ecosystem relied on an algorithm-based arbitrage mechanism to support its dollar peg. Once that failed, it failed hard.

-Now, just two months later, a pair of projects want to launch stablecoins that are not currency-backed, claiming to have fixed the problem that killed terraUSD and its partner token, LUNA, which was used to maintain the peg.

-The first is Aave, a leading decentralized finance (DeFi) lending platform, proposing the GHO stablecoin.

-The second is memecoin Shiba Inu developers proposing the SHI stablecoin.

-Both claim to have fixed the problem that killed Terra/LUNA.

-However, it is not clear how they have done this, and both projects have been met with skepticism.

 

 

shiba TREAT coin Crypto Market Loses $48B After Collapse, Calls for More Launches
Crypto Market Loses $48B After Collapse, Calls for More Launches 3

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