Binance lured investors to invest in Terra USD before the crash.
Binance is the biggest crypto exchange functioning in the world in the terms of market capitalization. Binance, remains to be the biggest crypto company to process more transactions than the next four exchanges combined. Before, the market went down-hill, binance went on to suggest the investors about the stablecoin Terra USD. Basically, Terra USD a stablecoin was tipped to be served as a savings account and promised to be pegged at $1 at any circumstance. Binance went on to lure the investors to invest in the stable coin by stating that the asset offered something special and remarked the currency as safe and high yield.
Terra USD’s catastrophic crash.
When the crypto market imploded in May, all the cryptocurrencies and stable coins were hit. The one stable coin which actually caused the market implosion to go to the extent it did, was none other than Terra USD.
Terra USD almost lost 99% of the value and was de pegged to $0.09. The catastrophic crash of the stablecoin saw billions of dollars get wiped off in the market. Not only did investors lose their investments, they also lost their life savings, educational savings and what not.
The down fall of USD, saw Binance’s stake reduced from $1.6 Billion to zero in no time. Many critics also exclaimed that the coin was nothing but a Ponzi Scheme. The collapse also influenced the price of bitcoin to plummet and played a key…
