Behind Terra’s $60 Billion Implosion

Hacks, scams, ponzis, rug pulls and crashes are known concerns in the crypto world. And yet, the recent collapse of the Terra ecosystem and its UST stablecoin seems different.

Terra was pitched as an important experiment — an attempt to create a stablecoin pegged to the US dollar without relying on traditional financial securities or overcollateralized crypto assets as reserves. Its sudden breakdown puts that idea in doubt, and one of its loudest critics is claiming victory.