The digital currency of the moon has lost virtually all its value

Stablecoins are digital coins that are tied to another asset, in this case the dollar. The creators of the stablecoin terraUSD assumed that it would be pegged to the dollar on a one-to-one basis. However, the price of this stablecoin, abbreviated UST, has been falling sharply for several days now, falling another more than 50 percent today and hovering around $ 0.15 in the morning.

Unlike competing stablecoins tether and USD Coin, terraUSD is not covered by any real-world assets, such as bonds. Instead, the founding organization of this stablecoin holds about $ 3.5 billion in bitcoins as a reserve. The creator of the terraUSD stablecoin is Do Kwon, which holds the reserve through its non-profit organization Luna Foundation Guard.

The sale of other assets considered risky also contributes to the decline in cryptocurrencies in recent days. These are, for example, the shares of many technology companies that do not make any profit.