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.

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Source Fool.com