Week InReview: May 13, 2022
The implosion of the TerraUSD stablecoin kindled wide-spread panic in the crypto space, but 24 hours later, things have calmed down significantly. Terraform Labs halted and then restarted its Terra blockchain in the wake of the collapse of TerraUSD and its related Luna token. Tether, the largest stablecoin used in cryptocurrency markets to facilitate trading, recovered from a mini-crash, soothing frayed trader nerves that its troubles might spill into the broader market. And Bitcoin rose as much as 6% to trade around $30,000. Such was the concern over the crypto crash that U.S. Treasury Secretary Janet Yellen weighed in to say Terra's crash underscores the dangers of tokens that purport to be pegged to the U.S. dollar, and called for new regulations in the arena.
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