Crash of TerraUSD Shakes Crypto. ‘There Was a Run on the Bank.’
The cryptocurrency TerraUSD had one job: Maintain its value at $1 per coin.Since it launched in 2020, it had mostly done that, rarely straying more than a fraction of a penny from its intended price. That made it an island of stability, a place where traders and investors could stash their funds in between forays into the otherwise frenzied crypto market.
This week TerraUSD became part of the frenzy too, slumping by more than a third on Monday and then tumbling as low as 23 cents on Wednesday.…