Are you aware of the latest TerraUSD implosion?
There is no match to it among recent crypto events. As the findings of a recent study into the event by Queen Mary University came out, the root cause of the event became clear.
What Did The Research Find?
The research mainly highlights that the ETH blockchain’s complex interactions caused TerraUSD to take a nosedive.
Stablecoins are usually pegged to conventional currencies like the USD. But TerraUSD had a freefall in 2022. According to Dr. Chegg from the university research team, the results were thrilling!
Around the time when the collapse happened, some unnatural trading patterns were observed. Rather than numerous traders flocking to the network, only a few were making the most of the transactions.
As Dr. Chegg states:
These transactions are stark evidence that there was a deliberate effort to destabilize the system!
A Factual Analysis
The data found from the research was excruciating. On prime days, only 5 to 6 traders were controlling the trade. That’s the major highlighted span when the scam occurred. Nearly all of them had the same or similar market share, too.
The research team says that there is a rare chance that such a thing could have coincidentally occurred. Most probably, it was a deliberate effort to take the market by storm and create panic.
Upon unfurling the trading patterns, some more facts were exposed. The traders were plugged, no doubt.
However, the bottom line is that the event couldn’t be stalled. But Dr. Chegg claims that their research has developed a genuine tool to depict anomalous trading patterns in advance.
Hence, traders can take advanced measures and save their assets or a whole currency from being wiped out!
