TerraUSD, the struggling and controversial algorithmic stablecoin, plunged on Wednesday as crypto markets await a rescue led by primary backer stablekwon Moneyweb TerrUSD crypto
TerraUSD, the struggling and controversial algorithmic stablecoin, plunged on Wednesday as crypto markets await a rescue led by primary backer Do Kwon. The token plunged from its intended 1-to-1 peg to the US dollar to trade at around 40 cents at 9:10 a.m. in London, data compiled by Bloomberg show. TerraUSD, or UST, is the biggest algorithmic stablecoin by market value. Over the weekend, the token lost its intended peg to the US dollar, falling to about 99 cents.
On Tuesday, following an earlier tweet from Kwon that he was “close to announcing a recovery plan,” the token traded off the lows and rallied to a high of around 94 cents. Unlike conventional stablecoins like Tether’s USDT or Circle’s USDC that are backed by real-world highly liquid cash equivalents or dollars, algorithmic tokens are designed to maintain their peg through a combination of mathematical equations and active trading.
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