In May 2022, one of the most catastrophic crashes in cryptocurrency history unfolded. The algorithmic stablecoin TerraUSD (UST) instantly lost its $1 peg. Within a few hours, the price plummeted from $1 to just a few cents. Over $40 billion of wealth evaporated in an instant. Those who believed they held "digital dollars" watched helplessly as their accounts hit zero. This disaster completely reshaped the market's perception of algorithmic stablecoins—when confidence collapses, algorithms simply cannot hold up.
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QuietlyStaking
· 5h ago
Algorithmic stablecoins are just a joke. I watched UST drop from $1 to a few cents firsthand. It was insane.
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gm_or_ngmi
· 12-10 23:11
UST Nashapo really wiped out, fortunately didn't go all in
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RektRecovery
· 12-10 23:10
ngl, the whole "algorithmic stablecoin" thing was security theater from day one. warned everyone the moment i saw the luna-ust death spiral mechanics... classic case of "we'll just code our way around physics." 400 billion gone because people genuinely believed math could replace collateral lmao
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quiet_lurker
· 12-10 23:03
Damn, this is the consequence of faith recharge.
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MidnightTrader
· 12-10 23:01
Algorithmic stablecoins are just a joke; I should have sold during the Luna wave.
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BlockchainTherapist
· 12-10 23:00
Algorithmic stablecoins are a joke, I've said it before.
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GasWaster
· 12-10 22:55
Algorithmic stablecoins? Laughable, it's just a fancy way for scam coins to sound legitimate.
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wrekt_but_learning
· 12-10 22:49
Algorithmic stablecoins are just a joke; I’ve been saying that thing is unreliable.
In May 2022, one of the most catastrophic crashes in cryptocurrency history unfolded. The algorithmic stablecoin TerraUSD (UST) instantly lost its $1 peg. Within a few hours, the price plummeted from $1 to just a few cents. Over $40 billion of wealth evaporated in an instant. Those who believed they held "digital dollars" watched helplessly as their accounts hit zero. This disaster completely reshaped the market's perception of algorithmic stablecoins—when confidence collapses, algorithms simply cannot hold up.