TerraUSD meltdown, part 6: What’s next for Terra, Luna, and the world of stable coins? - Crypto in Plain English - Episode 170 - by cryptohunt.it

TerraUSD meltdown, part 6: What’s next for Terra, Luna, and the world of stable coins?

Welcome to the cryptohunt jam where we spend one minute a day to explain crypto. In plain english.

Remember the last episode, a chilling history of mass withdrawals of Terra triggering the Terra and Luna coin collapses? Welcome to the last part of our one-week special. Today: What will happen now?

First, let’s speculate about the future of the Terra Luna blockchain. The organization running it has spent billions of their reserve, trying to stabilize the system, and it was all for nothing. They have no more powder left and it is safe to assume that the blockchain is dead forever, as public confidence is destroyed.

Second, let’s talk about stable coins in general. As a frequent listener of this podcast, you remember that not all stable coins are as stable as they claim to be. Yet, many investors put their life savings into them because they trusted the claims. It’s likely that governments will crack down and put a lot of pressure on those instruments.

There will also be a wave of other collapses as investors are withdrawing from stable coins. If you have money parked in them, consider one thing: By definition, stable coins don’t appreciate in value. But if they collapse, you could lose everything. It’s a very single-sided risk.

And lastly, this is a great reminder for us all: Knowing the history and understanding the complicated inner workings of crypto is really crucial to making good decisions. We hope that this podcast is giving you the inspiration to learn and the confidence to choose wisely.

Thanks for listening to this special, and if you have any feedback or questions, email us at podcast@cryptohunt.it. We would love to answer your questions!

Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.