Stablecoin TerraUSD’s $45 billion implosion last week triggered hysteria in the crypto space. TerraUSD, which is a so-called algorithmic stablecoin that is meant to maintain a 1:1 peg with the U.S. dollar, collapsed on May 12 and at its lowest point last week, was valued at just $0.02.

Singapore-based Terraform Labs Pte. Ltd., which operates price-stable cryptocurrency, froze and then restarted its Terra blockchain in the wake of the collapse of TerraUSD and its affiliated Luna token. The market has since stabilized somewhat, but the crash last week has exposed the myriad of risks in algorithmic stablecoins and what the world saw as a new form of finance.

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