Say one thing for algorithmic stablecoins like the one that collapsed in a $48 billion bank-run-style blaze of glory in May: They’re tenacious.
Or rather, their believers and investors are tenacious. Way too tenacious for the good of the fiat-pegged cryptocurrencies’ own future.
Despite the enormous losses the Terra/LUNA stablecoin ecosystem’s collapse, more algorithmic stablecoin projects are being launched and several have already “broken the buck” by losing their peg.
That’s exacerbated by the loss of peg suffered by the No. 1 stablecoin, Tether’s reserve-backed USDT, for several months in the wake of the Terra/LUNA collapse.