TerraUSD Stablecoin Plunges as Crypto Market Awaits Rescue (2)

TerraUSD, the controversial algorithmic stablecoin, slumped on Wednesday as crypto markets await a rescue led by primary backer Do Kwon.

The token fell further from its intended 1-to-1 peg to the US dollar to trade at around 50 cents at 10 a.m. in London, wiping out billions of dollars of value, data compiled by Bloomberg show. Luna, a coin that’s part of the peg mechanism for TerraUSD, tumbled 83% over the past 24 hours, according to CoinMarketCap.

Do Kwon

Photographer: Woohae Cho/Bloomberg

Broader crypto markets showed few signs of getting caught up in the turmoil, with stablecoins like Tether holding their pegs and ...