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The Collapse of LUNA & UST and the Vulnerability in Crypto | Nathaniel Whittemore

Hidden Forces

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The Evolution and Challenges of Stablecoins

This chapter explores the development of stablecoins in the cryptocurrency space, emphasizing their importance in reducing volatility and enabling trade. It discusses the impact of key events such as Facebook's Libra announcement and the rise of US-denominated stablecoins amid the DeFi boom. Additionally, it highlights the complexities and risks associated with algorithmic stablecoins, using the UST and Luna situation as a case study to examine market confidence and economic value creation.

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