Hosted by Sourya Reddy
Edited by Vikrant Anand
Since the first week of May 2022, cryptocurrencies across the world plummeted in value. At the centre of this massive drop were stablecoins, a kind of cryptocurrency that is pegged to a fiat value. One particular stablecoin, TerraUSD or UST, played a critical role in this.
Retail investors, big and small, saw stablecoins and in particular, UST, as a ‘safe’ way to explore cryptocurrency; they could make the gains that come with the volatility of crypto, but feel secured because their investments were backed by a fiat value. When this bubble burst, millions of dollars of wealth around the world—including India—was wiped out, with people losing huge amounts of money.
So what exactly happened during this crash? How has this affected Indian investors’ sentiment about stablecoins and cryptocurrencies? And what does this mean for regulation in the Indian cryptocurrency domain? We spoke to Rishi Thomas, Growth Lead at Cypherock and crypto investor, to learn more.