The collapse of the algorithmic stablecoin UST in early May caused increased volatility in the cryptocurrency market. The token lost its peg to the US dollar, which was provided by a certain burning and emission algorithm, as well as the LUNA support token. The market suffered multibillion-dollar losses, and investors and government regulators began to pay increased attention to the reserve funds of crypto companies issuing stablecoins.
Category: Need to know
On the one hand, staking ensures the security of the blockchain network, and on the other hand, it brings passive income to investors. A method of earning on cryptocurrencies, similar to a bank deposit, serves as an alternative to mining in blockchains based on the Proof-of-Stake (PoS) algorithm.