TerraUSD (CRYPTO: UST) losing its peg to the dollar and the subsequent blow-up seen in Terra (CRYPTO: LUNA) was termed one of the “largest fiascos” in cryptocurrency market history by Frank Downing, an analyst with Cathie Wood-led Ark Invest.
What Happened: Downing said Terra’s unraveling originated from its price stability mechanism, which was predicated on the UST peg being maintained algorithmically using LUNA to absorb changes in demand for the stablecoin.
