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Did get yourself some stablecoin? I hope not:
USD “stablecoin” Terra has now lost 25% of its value in the last few hours…So-called stable coins becoming unstable… https://t.co/ze7HooyOGk pic.twitter.com/2HVRuGyTRN
— christopher joye (@cjoye) May 10, 2022
As a $15bn stablecoin, Terra is supposed to sustain its value to the USD one-to-one.
Unbelievably, at least some of its capital is…wait for it…secured in Bitcoin!
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As BTC comes apart so too does the pyramid scheme. This might be the ugliest chart I have ever seen:
With zero regulatory scrutiny and inflation still hot, there is no way that the Fed can bail out the crypto complex.
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But it is going to be fun to watch the segment beg for it.
About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.