Why TerraUSD and Terra Are Falling Today
Over the last 24 hours, the price of the algorithmic stablecoin TerraUSD (CRYPTO: UST) and its sister cryptocurrency Terra (CRYPTO: LUNA) continued to trade with intense volatility.
The price of TerraUSD has plunged more than 31% as of 10 a.m. ET today, while the price of Terra has fallen more than 30%.
Founded by the influential South Korean crypto developer Do Kwon, TerraUSD is a popular algorithm stablecoin. Traditional stablecoins are digital assets backed by real assets such as a fiat currency or commodity. Algorithmic stablecoins, on the other hand, use complex technology to maintain their peg to these assets but are not actually backed by them.
Source Fool.com
