Hash Notes

Crypto Crash

TerraUSD, a so-called algorithmic stablecoin, aims to be a substitute for the dollar by intertwining with Luna, which has no fixed value. The plan is that if the value of TerraUSD tumbles below $1, it could be “burned” and exchanged for a dollar’s worth of Luna, and vice versa.

Terraform Labs has been scrambling to find ways — including reportedly trying to raise money — to resolve the situation, but so far it has had no luck.

Do Kwan’s wife placed under emergency police protection, an unidentified person broke into her apartment building, rang the doorbell to ask if Kwon was home, before leaving the premises after she said he wasn’t.

Kwon, who developed a reputation for belittling and attacking critics of his project, has now been likened to Elizabeth Holmes, found guilty of fraud for her Theranos deception.

Terra UST was designed to trade at a one-to-one ratio to the greenback, but not with some form of actual collateral that should underpin its value as is the case with Tether.

Instead it employed an algorithmic process of creating and then destroying its very own supply of Luna coin that served as a kind of shock absorber.

When the peg started to fail, the protocol was designed to stabilize the value through the minting of more Luna—only the sustained attack meant it was being suddenly being created at an exponential rate.