Crypto

Terra Crash disrupted the global crypto market

  • South Korea has notified that Interpol has issued a red alert notice to arrest the co-founder of Terra.

Terraform Labs failed this year, and the economics of the crypto industry collapsed. The major impact of the Terra crash impacted the crypto sector in South Korea.

Earlier this month, South Korea informed Interpol that it had issued a red notice to arrest the co-founder of Terra and Luna in a money laundering case.

The algorithmic stablecoin lost value against the dollar peg and died at $30 billion within days. Earlier this year, crypto-finance giants Voyager and Celsius filed for bankruptcy under Chapter 11 bankruptcy laws. Although the capital of Three Arrows also suffered huge financial losses in 2022.

Non-volatile crypto tokens are critical to crypto adoption. A bunch of stablecoin projects are trying to find level support like Terra and distancing themselves from Terra.

In an interview with a crypto news outlet, Sam Kazemian, developer of Frax stablecoin (decentralized protocol), mentioned in his comment that after the Terra crash, “there was more skepticism” towards stablecoins.

Kazemian pointed out that “it’s a shame it had to happen after all Earth situation, but there needs to be a bit more discipline “on the part of the stablecoin issuers”.

The rapid adoption of the stablecoin began in 2019-2021, and the stablecoin has become a leading branch of the crypto industry.

According to market capitalization, the top three cryptocurrency stablecoins are Tether (USDT), US dollar Coin (USDC), and Binance USD (BUSD). These three renowned stablecoins collectively hold 90% of the overall stablecoin market.

Kazemian pointed out that “this is still the era of fiat money”. further adding, he said, “The long game” involves “stablecoins that are decentralized, on-chain, and pegged to a basket of consumer items.

According to data from CoinMarketCap, at the time of writing, USDC is trading at $1 with a 24-hour volume of $4,091,691,532. And USDT also showed a good signal and is trading at $1 with a 24-hour volume of $4,091,691,532.

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