🚨 Time is Running Out: Reserve Your Spot in the Lucky Draw & Claim Rewards! START NOW
Learn to gain real rewards

Learn to gain real rewards

Collect Bits, boost your Degree and gain actual rewards!

Video Courses
Video Courses
Scale your career with online video courses. Dive into your learning adventure!

The CRS Shares a Recap of UST Stablecoins' Colossal Fall

The CRS Shares a Recap of UST Stablecoins' Colossal Fall

The US Congressional Research Agency comments on UST stablecoin and implies that it has regulatory liabilities.

The Congressional Research Service, a public policy research institute of the US Congress, has shared a recap of the current algorithmic stablecoins' situation in the crypto world and outlined several significant points.

The colossal fall of UST prices has revealed a “run-like” case where many shareholders and traders have taken out their investments at the same time, thus generating bad numbers in the statistics. So, the CRS suggests that a "run" situation occurs when investors are doubtful about the reserves backing the asset's dollar peg.

What is BNB? The Truth Behind Binance Smart Chain (Animated)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

What is BNB? The Truth Behind Binance Smart Chain (Animated)

What is BNB? The Truth Behind Binance Smart Chain (Animated) What is BNB? The Truth Behind Binance Smart Chain (Animated)

On top of that, as the traditional financial system components such as banks and credit unions have their own regulations to avoid such “run-like” occurrences, the stablecoin industry does not implement any measures, whatsoever.

During the past few weeks, the UST stablecoin has crashed significantly and hit a new low. Now, it is estimated at $0.12 as it lost its peg to the dollar. Last year in June, The Iron Titanium (TITAN) token experienced a similar case when its value almost fell to zero in only one day.

On May 12, the CEO of Seoul-based company Terraform Labs Do Kwon suggested a plan to save UST from complete destruction. He stated that the minting capacity will be increased from almost $300M up to $1.2 billion and the base pool will be raised from 50M to 100M SDR.

Aaron S., Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.



Earn Huge Exclusive Binance Learners Rewards