How TerraUSD, a Digital Token Designed to be Stable, Fueled a Crypto Crash – Barrons

Bitcoin and other cryptocurrencies have gone from bad to worse as selling pressure intensifies across the tech landscape. But the crypto crash appears to have been accelerated by a type of token that’s supposed to hold up when everything else tanks: stablecoins.

As their name implies, stablecoins are designed to maintain a fixed value, typically set at $1 per token. But a fast-growing “algorithmic” stablecoin called TerraUSD crashed as low as 23 cents on the dollar this past week, before recovering a bit. That appears to have…

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