Terra Crash Troubled Crypto Market Globally

South Korea notified that Interpol issued a red alert notice to arrest the co-founder of Terra.

Terraform labs failed this year, and the economy of the crypto sector collapsed. The major impact of Terra crash impacted the crypto sector of South Korea.

Earlier this month, South Korea informed Interpol that it issued a Red Notice to arrest the co-founder of Terra and Luna in the case of money laundering.

The algorithmic stablecoin lost its value compared to the dollar peg and died at $30 billion in days. Earlier this year, crypto finance giants Voyager and Celsius filed for bankruptcy under chapter 11 of Bankruptcy laws. Although Three Arrows capital also suffered huge financial losses in 2022.

Non-Volatile crypto tokens are essential to crypto adoption. A group of stablecoins projects are trying to find level support like Terra and distancing themselves from Terra.

In an interview with a crypto news outlet Sam Kazemian, developer of Frax stablecoin(decentralized protocol), mentioned in his comment that after Terra crashed, “there more scepticism” was reflected towards stablecoins.

Kazemian highlighted that “It’s unfortunate it had to happen after the whole Terra situation, but there’s got to be a little more discipline” on the part of stablecoin issuers.”

The rapid adoption of stablecoin began in 2019-2021, and stablecoin became a leading branch of the crypto industry.

As per the market cap, the top three leading cryptocurrencies stablecoins are Tether(USDT), US dollar Coin(USDC), and Binance USD(BUSD). These three renowned stablecoins collectively hold 90% of the overall stablecoin market.

Kazemian underlined that “It is still the Era of fiat coin era.” adding more, he said, “The long game” involves “stablecoins that are decentralized, on-chain, and pegged to a basket of consumer items.

According to data from CoinMarketCap, While writing this article, USDC is trading at $1 with a 24-hour volume of $4,091,691,532. And USDT also showed a good signal and is trading at $1 with a 24-hour volume of $4,091,691,532.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing