The Intelligence from The Economist Luna landing: Crypto chaos
May 17, 2022
Join Alice Fullwood, an American finance correspondent for The Economist, and Charlie McCann, the Southeast Asia correspondent, as they dive into the chaotic world of cryptocurrency. They discuss how the collapse of the Terra stablecoin has shaken market confidence amid rising interest rates. The conversation also highlights the dire environmental impact of extreme heatwaves in India and the surprising conflict between Indonesia's beloved songbird competitions and the survival of wild bird populations. Tune in for insights on finance and nature!
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Crypto Market Downturn
- Cryptocurrencies suffered significant losses in 2022, exceeding those of major U.S. indices.
- The instability of stablecoins, crucial to the crypto market, has further exacerbated the downturn.
Terra's Collapse
- Terra, once the fourth-largest stablecoin, collapsed due to a crisis of confidence similar to a bank run.
- Its algorithmic peg to the dollar failed, resulting in its value plummeting to near zero.
Tether's Instability
- Tether, the largest stablecoin, briefly lost its dollar peg, raising concerns about its backing.
- Unlike Terra, Tether claims to be backed by traditional assets but lacks full transparency.