Is TerraUSD?s Collapse Crypto?s Lehman Brothers Moment"
As long as the same macroeconomic conditions that led to the rise of LUNA, UST and Anchor Protocol exist, nothing much will change.
The post Is TerraUSD?s Collapse Crypto?s Lehman Brothers Moment" appeared first on LUXUO.
About a month before TerraUSD started to lose its peg with the dollar, a multi-family office manager sought my advice ? more of his clients were looking at cryptocurrencies as an investable asset class, but being unfamiliar with the space, he felt ill-at-ease to opine.
According to the multi-family office manager, let?s call him Rick, some of his clients were divesting assets to their adult children, whether to provision for the purchase of matrimonial property or to give them a head start in life.
Many of these young working adult beneficiaries were also coming into the cryptocurrency space and were naturally drawn to decentralised finance or DeFi, because the yields being offered were far superior to bank deposits.
READ MORE: Could DeFi be Crypto?s DeFining Moment"
Inevitably, some were lured to Anchor Protocol, given its eye-popping stablecoin yields and some were even smug about it, dismissing their parents as being ?too conservative? and not keeping up with technology.
After all, while their parents were earning less than 0.5 per cent on dollar deposits, these young?uns were being minted with Anchor?s sweet dollar yields that were over double the rate of US inflation.
Alarmed, I immediately raced to the whiteboard to dra...
The post Is TerraUSD?s Collapse Crypto?s Lehman Brothers Moment" appeared first on LUXUO.
About a month before TerraUSD started to lose its peg with the dollar, a multi-family office manager sought my advice ? more of his clients were looking at cryptocurrencies as an investable asset class, but being unfamiliar with the space, he felt ill-at-ease to opine.
According to the multi-family office manager, let?s call him Rick, some of his clients were divesting assets to their adult children, whether to provision for the purchase of matrimonial property or to give them a head start in life.
Many of these young working adult beneficiaries were also coming into the cryptocurrency space and were naturally drawn to decentralised finance or DeFi, because the yields being offered were far superior to bank deposits.
READ MORE: Could DeFi be Crypto?s DeFining Moment"
Inevitably, some were lured to Anchor Protocol, given its eye-popping stablecoin yields and some were even smug about it, dismissing their parents as being ?too conservative? and not keeping up with technology.
After all, while their parents were earning less than 0.5 per cent on dollar deposits, these young?uns were being minted with Anchor?s sweet dollar yields that were over double the rate of US inflation.
Alarmed, I immediately raced to the whiteboard to dra...
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