Lessons to Learn from the Market Implosion of Stablecoin Terra USD

TerraUSD (UST) is the stablecoin of the Terra blockchain. It currently stands in the 14th position in the CoinMarketCap ranking of cryptocurrencies in their market capitalization. It is trading at $0.6605 at the time of writing. However, it experienced a market implosion. TerraUSD saw its price gain a 24 hours minimum and maximum price of $0.2998 and $0.9206, respectively. It ought to have equivalent value to the United States Dollar, but this implosion is its worst performance since its launch. It attained its maximum price of $1.05 on January 30th, 2021. Some of the lessons to learn from this abnormally UST price are: Always diversify your investment History will always repeat in Crypto Unhealthy competition could be costly Endeavor to read and check out your portfolio at regular intervals Always Diversify Your Investment Someone might ask, “is it not necessary to diversify stablecoins holdings since they are pegged to fiat and mostly the United States Dollar?” Stablecoins have extremely low volatility, unlike other cryptocurrencies. It will always be close to the value of the fiat at which it is pegged. Hence, it is essential to diversify. History Will Always Repeat Tether (USDT) and DAI experienced their market implosion at different times. As a result of the collapse of the Tether market, Bitcoin prices have been fluctuating at various exchanges with a wide margin. However, Tether (USDT) survived this instability. UST saw...