Investors take huge hit as TerraUSD and Luna crash, dragging down cryptocurrency market

TerraUSD, or UST, was tied to the United States dollar using an algorithm but lost its peg over the weekend. PHOTO: AFP
New: Gift this subscriber-only story to your friends and family

SINGAPORE - Investors in the cryptocurrency universe were sent scrambling after the sudden and dramatic crash of stablecoin TerraUSD, known for its stability, triggered a sell-off that has spread to other digital tokens in the market.

TerraUSD, or UST, is a stablecoin - a breed of cryptocurrency known in the digital asset market to be more stable and has thus gained traction with traders.

Already a subscriber? 

Dive deeper at $0.99/month

Want more exclusives, sharp insights into what's happening at home and abroad? Subscribe to stay informed.

Unlock these benefits

  • All subscriber-only content on ST app and straitstimes.com

  • Easy access any time via ST app on 1 mobile device

  • 2-week e-paper archive so you never miss out on any topic that matters to you

Join ST's Telegram channel and get the latest breaking news delivered to you.