The collapse this month of digital tokens and exchanges featured a lot of names even laymen would recognize: bitcoin, Coinbase, ether. But the players perhaps most responsible for turning a slow decline into a plummet aren’t nearly as well known. The implosion of so-called stablecoin terraUSD and its sister coin luna show what all crypto schemes rely on: faith.
South Korean entrepreneur Do Kwon hawked terraUSD as an innovation that would transform the industry. Stablecoins are supposed to be exactly what their name implies: stable. They’re pegged to the value of an existing currency, usually the dollar, so that buyers can always exchange them at a 1-to-1 rate. Traditionally, their value is backed by a reserve including more reliable assets such as cash and treasuries — themselves backed by the full faith and credit of the United States.
Kooky as this concept sounds, in the end it’s rooted less in complicated computer science than in good, old finance. TerraUSD was tied to a newly...
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INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...