Cryptocurrency’s 2008-Style Crash Could Affect Real Markets

  • If UST goes above one dollar, more UST is created by burning a dollar’s worth of luna for each new UST. If UST goes below one dollar, UST is burned and luna is created.
  • The main engine of demand for UST is to lend it to Terra’s Anchor Protocol, a separate system, for cryptocurrency traders to use.
  • That’s not for lack of effort from the cryptocurrency world, whose endgame appears to be to make cryptocurrency systemic and leave the government as the bag-holder of last resort when the tottering heaps of leverage fall down.