{"id":449044,"date":"2022-05-18T20:30:00","date_gmt":"2022-05-18T17:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/analysts-assess-the-aftermath-of-the-terra-luna-collapse-cointelegraph-interview\/"},"modified":"2022-05-18T20:30:00","modified_gmt":"2022-05-18T17:30:00","slug":"analysts-assess-the-aftermath-of-the-terra-luna-collapse-cointelegraph-interview","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/analysts-assess-the-aftermath-of-the-terra-luna-collapse-cointelegraph-interview\/","title":{"rendered":"# Analysts assess the aftermath of the Terra (LUNA) collapse | Cointelegraph interview"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3e2de687725\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3e2de687725\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/analysts-assess-the-aftermath-of-the-terra-luna-collapse-cointelegraph-interview\/#%E2%80%9D_Analysts_assess_the_aftermath_of_the_Terra_LUNA_collapse_Cointelegraph_interview_%E2%80%9C\" >&#8221; Analysts assess the aftermath of the Terra (LUNA) collapse | Cointelegraph interview    &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Analysts_assess_the_aftermath_of_the_Terra_LUNA_collapse_Cointelegraph_interview_%E2%80%9C\"><\/span>&#8221; Analysts assess the aftermath of the Terra (LUNA) collapse | Cointelegraph interview    &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvM2ExYWIxOTctYmQyYy00MThlLWFiZmItOTA2NDY2MjU0ZTdjLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-2a0745c6>Financial commentator Frances Coppola is convinced that algorithmic stablecoins such as TerraUSD (UST) will always be vulnerable to sudden collapses, no matter how much the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> improves.\u00a0<\/p>\n<p>\u201cThey can improve their <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a> theory, they can improve their risk assessment, but I think there will still always be some states of the world that they won\u2019t have thought of,\u201d pointed out Coppola in a discussion with Mike McGlone, senior commodity strategist at Bloomberg.<\/p>\n<p>Terra\u2019s UST stablecoin, which relied on an algorithm to maintain a peg to the U.S. dollar, collapsed last week, sparking turmoil in the crypto markets.<\/p>\n<p>According to McGlone, Terra\u2019s collapse is part of a natural \u201cpurge\u201d of the crypto space that h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ens in every bear market. According to the analyst, the concerns around leading stablecoin Tether (USDT), which briefly lost its peg to the dollar as a result of Terra\u2019s collapse, shouldn\u2019t be overestimated.\u00a0<\/p>\n<p>As McGlone pointed out, Tether already depegged briefly in April 2019 when the New York state attorney <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> filed a lawsuit against its sister company, Bitfinex.\u00a0<\/p>\n<p>\u201cThe market said, \u2018We don&#8217;t care. This is a better way to transact dollars,\u2018\u201d said McGlone. <\/p>\n<p>Coppola, on the other hand, pointed out that while investors were redeeming Tether en mass amid Terra\u2019s collapse, other stablecoins such as USD Coin (USDC) and Binance USD (BUSD) performed as safe-haven assets, thus proving to be more trusted.\u00a0<\/p>\n<p>Still, Coppola thinks Tether is unlikely to suffer a collapse similar to the one experienced by Terra, as it is backed by real assets held in its reserves. She pointed out that in the event of a crisis, Tether would be able to avoid a mass bank run by suspending redemptions according to its policy. <\/p>\n<p>According to Coppola, the primary source of systemic risk for the crypto market is not stablecoins but crypto exchanges. <\/p>\n<p>\u201cIn the event of a Coinbase failure, a lot of people are potentially going to lose a lot of money,\u201d she said. \u201cIt would cause kind of a Lehman moment, if you like, in the crypto space.\u201d<\/p>\n<p>Check out the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/youtu.be\/IbVp78QDO3s\">full discussion<\/a> on our <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.youtube.com\/channel\/UCRqBu-grVX1p97WaX4d-OuQ\">YouTube channel,\u00a0<\/a>and don\u2019t forget subscribe! <\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/analysts-assess-the-aftermath-of-the-terra-luna-collapse-cointelegraph-interview\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Analysts assess the aftermath of the Terra (LUNA) collapse | Cointelegraph interview &#8220; Financial commentator Frances Coppola is convinced that algorithmic stablecoins such as TerraUSD (UST) will always be vulnerable to sudden collapses, no matter how much the technology improves.\u00a0 \u201cThey can improve their game theory, they can improve their risk assessment, but I&#8230;<\/p>\n","protected":false},"author":1,"featured_media":449045,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvM2ExYWIxOTctYmQyYy00MThlLWFiZmItOTA2NDY2MjU0ZTdjLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74863,74868,75493,122378,82350,36041],"class_list":["post-449044","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-cryptocurrencies","tag-defi","tag-stablecoin","tag-terra","tag-usd-coin","tag-tether"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/449044","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=449044"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/449044\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/449045"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=449044"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=449044"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=449044"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}