SPECULATION is rife as to why Terra’s algorithmic stablecoin experiment crumbled. An understanding of how it was supposed to work may provide some clues as to why it didn’t. 

Unlike other stablecoins said to be pegged to tangible assets, TerraUSD (UST) was designed to work with its sister token, Luna, to maintain a one-to-one peg with the dollar. 

Terraform Labs, the company behind TerraUSD, was set up in Singapore in April 2018.