Terra, one asset in the crypto space, was mostly isolated to people trading just that asset, despite accurate warnings from other crypto traders. There was also selling of the partial collateral accumulated to support Terra, like a billion dollars worth of bitcoin which contributed to some selling pressure and failed to support terra, as predicted.
But aside from that, the rapid implosion of terra did reveal some other coding challenges within other projects, that did result in contagion and an ongoing fallout with projects few have ever heard of. But many projects with exposure to terra weathered it exceedingly well due to the system designs, its pretty intentional that there are not articles about that - I’ve emailed Bloomberg authors about this omission. Pretty much every article and discussion last week was overblown and inaccurate. There is no interest in showing crypto assets and protocols working, but they are aware. (So just buy the dips in better designed things if it fits your risk profile.)
This article is specifically about faith in uncollateralized algorithmic stablecoins being shaken. And good riddance to that! There are plenty of stablecoins doing very well in this market rout.
This has been a very amusing weekend though, Terra has become a meme coin, bouncing 500x off the lows (50,000%). Maybe you’ll hear about an article about all the millionaires made from buying the dips. My bet is probably not.