Unstable Coin? 📉

Unstable Coin?

One of the more interesting things to come out of crypto is the concept of a stablecoin. Popular stablecoins function as a digital dollar, with the tokens being pegged to the US dollar as a way to store money in the digital world instead of a bank account. Stablecoins have become popular enough to the point where the US government is looking into the viability of a legitimate digital dollar held by the government, but there are still a lot of steps that need to be cleared before that happens.

One of those includes a stablecoin scare that we witnessed on Monday that has many shocked. TerraUSD, the 10th highest cryptocurrency by market cap, broke away from the 1-dollar mark in what has been dubbed a shock event. TerraUSD is now floating around 77 cents, marking a 23 percent decrease in the price as investors have been selling the coin ever since it broke from the peg. People are unsure as to how this fall happened, but crypto enthusiasts predict that it was either a group of people trying to break the peg or large withdrawals from the decentralized bank that holds the tokens. Crypto groups all around are donating cryptocurrency to TerraUSD in order to help stabilize the peg, but according to Ilan Solot, it will be a while until TerraUSD returns to 1 dollar as there are still many sell orders to be processed in the coming days, which is going to weigh it down. The crypto market had a slight downturn after the news, and it marks one of the growing pains of this industry.

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:

More Posts

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community.The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results.Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such.Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.