After the crypto crash here’s what next

Cryptocurrencies dominated the World Economic Forum in Davos this year. A notable difference from the last one in 2020. This comes after a collapse in the cryptocurrency market. The collapse was as a result of the fall of an algorithmic stablecoin called TerraUSD or UST. Its fall resulted to its sister token Luna to drop to 0$ in May

Currently, global regulators are setting their sights on the cryptocurrency industry.

Stablecoins

Stablecoins are a type of crytpocurrency which are pegged to real world assets. They include tether, USD coin which aim to mirror the US dollar one-to-one and are backed real assets such as currencies and bonds. They hold a reserve of these assets in order to maintain a dollar peg

TerraUSD crashed due it mimicking the dollar and trying to maintain stability through a complex algorithm. Sadly, the algorithm failed and resulted to UST losing it peg and collapsing

The Industry welcomes the bear market

The crypto industry welcomed the bearish market which saw major tokens like bitcoin fall more than 50% from their all time highs. Some the current market is an advantage for it will clear people who were in the market for bad reasons.

Consequently, regulators and authorities are antagonistic to crypto currencies much like they were over the past years. But regulators claim the thinking from regulators has shifted to something slightly more constructive

The market is constantly changing both regulators and big enterprises. Everyone wants to be more involved in crypto now, no one is ignoring the industry anymore

In March U.S president Joe Biden called the government to examine the risks and benefits of cryptocurrencies. Despite that there is no major crypto currency regulation in the U.S or other major economies.