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The Guardian - UK
The Guardian - UK
Technology
Alex Hern and Dan Milmo

Q&A: the collapse of terra and what it could mean beyond crypto

Terra cryptocurrency and US dollar bills
The fall in terra’s market capitalisation from $41bn to $6.6m represented ‘the largest destruction of wealth … in a single project in crypto’s history’. Photograph: Dado Ruvić/Reuters

The collapse of a multibillion-dollar cryptocurrency called terra has sparked a wave of “fear, uncertainty and doubt” across the sector, leading some, like Coinbase’s chief executive, Brian Armstrong, to suggest the industry is heading for another “crypto winter”. But how did one coin stumbling cause such panic? And could a downturn spill into the wider economy?

How does crypto work?

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