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Crypto’s $270 Billion Meltdown Gives Way to an Uneasy Calm (1)

May 13, 2022, 4:45 PM

Even by the white-knuckle standards of the cryptocurrency universe, it was a standout week.

An algorithmic stablecoin called TerraUSD crashed from its dollar peg when the complex mechanism designed to ensure the link suddenly turned against it, sucking even the biggest digital assets into a vortex of panicked selling. Terms like “death spiral” entered the vernacular.

By mid-week, the turmoil briefly dragged down the $80 billion Tether stablecoin -- a giant of the market and a key cog in many transactions -- prompting its issuer to reassure investors that all is well. Exchange-traded products linked to crypto also got hammered, ...