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Risks of Stablecoins Highlighted as Terra’s Peg Breaks
The failure of the algorithmic peg mechanism fixing the price of Terra’s USD stablecoin (UST) and the umooring of Tether from its USD peg highlight the fragile nature of private stablecoins, and will accelerate calls for regulation, says Fitch Ratings. We have previously indicated that algorithmic stablecoins have struggled to win regulatory acceptance, as they can face particular risks in maintaining a stable value. In the case of UST, the backing entity’s crypto reserve was not sufficiently large to serve as a source of stability when the UST’s algorithmic peg mechanism came under speculative pressure. Over ... (full story)
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From cnbc.com|May 12, 2022Luna, the sister cryptocurrency of controversial stablecoin TerraUSD, has collapsed to nearly $0. TerraUSD, or UST, has been dragged into the spotlight in the last few days after ...
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From markets.businessinsider.com|May 12, 2022A broad crash across risk assets spread to cryptocurrencies this week, dragging down the net worth of industry titans as bitcoin and ethereum plummet and stablecoins spiral. FTX's ...
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From @DeItaone|May 12, 2022tweet at 10:38am: *YELLEN: STABLECOIN RISKS NOT YET AT SYSTEMIC-THREAT SCALE tweet at 10:38am: *YELLEN: STABLECOINS NOT YET REAL THREAT BUT GROWING RAPIDLY tweet at 10:47am: @PatrickMcHenry @FSCDems @FinancialCmte @SecYellen @RepMaxineWaters @jahimes @RepLynch "I think the risks associated with the proliferation of private "I think that the benefit of issuing a CBDC would be that it might diminish the proliferation of these stablecoins but it depends on the design of exactly how the CBDC is introduced," @SecYellen says tweet at 11:01am: @PatrickMcHenry @FSCDems @FinancialCmte @SecYellen @RepMaxineWaters @jahimes @RepLynch @RepRitchie Bank regulation framework has flexibility for different models, @SecYellen says
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From theblockcrypto.com|May 12, 2022The Terra blockchain has been halted to protect against a possible attack, according to a statement by Terraform Labs. "Terra validators have decided to halt the Terra chain to ...
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From channelnewsasia.com|May 12, 2022Most cryptocurrencies have a major problem with price volatility, but one sub-category of coins is designed to maintain a constant value: stablecoins. As cryptocurrency prices ...
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From sportsbusinessjournal.com|May 12, 2022Terra, the cryptocurrency company that signed a $40M partnership with the Nationals in February, had its algorithmic stablecoin TerraUSD (UST) trade at less than $0.30 yesterday. ...
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- Posted: May 12, 2022 12:05pm
- Submitted by:Category: Fundamental AnalysisComments: 0 / Views: 92
