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What Happens When a Crypto Blockchain Like Terra Dies (1)

May 16, 2022, 6:22 PM

The crypto world has been riveted by the rapid collapse of the TerraUSD stablecoin. But its implosion may bring about something just as noteworthy: the death of a major blockchain.

The Terra blockchain -- the platform supporting scores of decentralized applications that let users swap crypto coins and earn yields -- was halted and then restarted twice in recent days, as the value of its main cryptocurrency, Luna, and the related TerraUSD (UST) stablecoin collapsed following a wave of selling pressure. Along the way, incentives for various parties to support the chain evaporated, sending the ecosystem that nurtured more than ...