So this uh, you know, on top of these things, we have applications such as anchor whereby stable points can be deposited into smart contracts and they can be leveraged to tap into the power of staking yields that are coming in from multiple blockchains to power. You know a 19.5 percent yield on tera stable points, which is the best uh best risk adjusted yield that you can get on uh any uh, stable point in the market. Well, that was terraform labs. Ceo do kwan speaking about his companys, stable coin: tara on yahoo finance back in october of last year, but tara has had a painful week this week losing 50 percent of its value in the last 24 hours joining me now, with more on this story, is yahoo Finances david holliworth and david. When you look through the numbers here, the token fell as much as 62 cents. I mean this is a coin thats supposed to be pegged to the dollar. What are the implications of this for other stable coins? Uh right, akiko thats, a good uh way to get into it. This is a complicated story, thats sort of developing as we speak, but for other stable coins. It means that theyre likely to take advantage um. You know when a stable coin drops below its peg. They can be pegged to a lot of different assets, but typically its the us dollar. So when they in this case, when uh tara usd dropped below its one dollar peg, it became harder to sort of shore up interest in the asset and uh last night um, it dropped uh below 70 cents, which doesnt sound like much for a cryptocurrency, but its Huge for a stablecoin, um and thats really had ramifications in the sense that theres a lot of money in this thing: um 18 billion dollars before the drop, yeah and tara usd lost about 5 billion dollars.

It has since recovered and now its trading back around 92 cents, its sister coin, which is used to sort of govern its price luna, has fallen um, as you can see, uh by much greater degrees, almost uh, 50 percent last i checked, but it is uh changing Pretty rapidly it looks like yeah, it looks like 52 as of right now, so that is an ongoing situation. The other thing here is that um sort of as a la buyer of last resort effort the non profit organization that sort of uh manages this uh algorithmic stable coin. Uh is coming in with about a one 1.5 billion dollar loan in bitcoin to shore up the reserves. That means theres going to be. You know foreseeably a lot of selling events of bitcoin and potentially other assets as they try and defend their price yeah. I mean this charge pretty much says it all in terms of the declines that weve seen alongside those declines, we saw one of the largest crypto trading platforms, finance, suspend luna and ust withdrawals. What did we hear? Why did they? Why did they do that? Right, yeah? I i spoke. I spoke with them um last night and uh. This was sort of after reports that binance had had sort of limited trading in such a way that, even though terror usd was trading above 70 cents at the time by market value, one could only buy or sell it at 70 cents.

So they were effectively controlling the price mechanism. Finance again is one of the largest global exchanges. Now what they said to me was essentially that that they had to sort of do this as as a way to limit withdrawal withdrawals of of tara luna. In the same sense, that you know, we saw something like uh like robin hood: um halt order trading for gamestop, so its sort of theyve said its sort of a matter of volatility um. Now it sort of uh remains to be seen, theres a lot of hearsay about whats, actually going on theres another mystery which is sort of uh. You know who originally sort of uh knocked the you tara usd off its balance, um back over the weekend and sort of sparked all this. So so still a lot of questions to answer. Okay – and i know youll – stay on top of that david hollerer thanks.