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Fintech

How a stablecoin crash shook the crypto market

TerraUSD, pledged to maintain a value of one dollar, plunged as low as 23 cents this week, showing cryptocurrencies’ vulnerability

The cryptocurrency TerraUSD had one job: Maintain its value at $1 per coin.

Since it launched in 2020, it had mostly done that, rarely straying more than a fraction of a penny from its intended price. That made it an island of stability, a place where traders and investors could stash their funds in between forays into the otherwise frenzied crypto market.

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