After the crash of the ‘stablecoin’ sparked panic, could the fall of the wider crypto market lead to a more permanent economic crunch?
- $7.6bn of ‘stablecoin’ tether redeemed since start of crypto crisis
The collapse of a multibillion-dollar cryptocurrency called terra has sparked a wave of “fear, uncertainty and doubt” across the sector, leading some, like Coinbase’s chief executive, Brian Armstrong, to suggest the industry is heading for another “crypto winter”. But how did one coin stumbling cause such panic? And could a downturn spill into the wider economy?