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Imagine your local grocery store releases a "store dollar."
They tell everyone: "This thing is basically like cash - it's ALWAYS worth one real dollar."
People start using it because it's convenient. Some even keep extra money in it because, well, it's supposed to be the boring, safe option.
And for a while, it works.

Until one afternoon, that "store dollar" slips. Just a little at first. 97 cents.
The store says, "No big deal! Our system fixes this automatically."
The fix: when the "store dollar" drops below $1, the system offers a deal.
"Give us your store dollars, and we'll give you a different coupon that's worth $1."
The hope is that enough people take that deal, fewer "store dollars" are left floating around, supply tightens, and the price goes back to $1.
... At least in theory.
Because in real life, people don't study the mechanism - they watch the price.
And the moment they see the "store dollar" slipping, they stop thinking about how the system should work and start thinking about how fast they can get out.

That's basically what happened with a stablecoin called TerraUSD.
TerraUSD wasn't backed by real dollars like many stablecoins. It stayed "stable" through a system - automated rules tied to another token, Luna.
When TerraUSD drifted off $1, the system tried to rebalance it through swaps.
And just like the "store dollar," the catch was simple: it worked as long as people believed it would.
When that belief cracked in 2022, the exit broke the system. TerraUSD collapsed. Luna followed. Tens of billions of dollars disappeared.

(Sorry to the crypto vets who just relived the Terra saga for the billionth time. Had to run it back for the newcomers. But here's the part that's new for everyone:)
Yesterday, Do Kwon, the co-founder and face of TerraUSD and Luna, was sentenced to 15 years in US federal prison for fraud tied to that collapse.
👉 Not because Terra failed.
👉 Not because people lost money.
👉 He was sentenced because of how TerraUSD was sold.
TerraUSD was presented as stable. But the system only worked while confidence held. Once confidence cracked, the design didn't cushion the fall - it amplified it.
Prosecutors argued that this fragility wasn't clearly communicated to investors. The real risk wasn't just losing the peg; it was that the whole thing could unwind instantly under stress.
That gap between how safe it was described and how it actually behaved is what turned a market blow-up into a fraud case.

Markets allow losses. They don't allow calling something "stable" when it breaks the moment pressure shows up.
So, the takeaway: if you build something people treat like money, you're responsible for being honest about how it can fail.
And that's the line this sentence draws.
Another crypto legal case closed.

Source: Binance News / #BitDegree / Coindesk / Coinmarketcap / Cointelegraph / Decrypt

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#TerraUSD #terraluna #TerraClassic #DoKwon $USTC $LUNA $LUNC

Putting your money in a savings account today is like walking on a treadmill at speed 0.3.
Technically moving. Emotionally devastating.
Banks take your deposits, lend them out at strong rates, and you get whatever crumbs are left over after fees, spreads, and executive bonuses.

That gap between:
👉 What your money earns
👉 And what your bank earns with your money
... is exactly why financial rebels keep trying to rebuild the system.
Which brings us to Michael Saylor, aka Bitcoin's most consistent hype man, aka a guy who has never met a dip he didn't want to buy.
This week in Abu Dhabi (one of the world’s fastest-growing financial hubs), Saylor pitched a big idea:
What if new digital banks were backed by Bitcoin instead of fiat?
Source: The Bitcoin Therapist

Here's the logic behind the pitch:
Right now, trillions of dollars are constantly sloshing around the world, hunting for the least disappointing place to sit.
👉 Savings accounts pay little.
👉 Bonds get eaten by inflation.
👉 Cash slowly leaks value.
Saylor's idea is that Bitcoin-backed digital banks could become a new global "parking lot" for that money - but one with real yield potential.

The structure itself isn't some DeFi fever dream either. Saylor's rough framework looks like this:
👉 80% in digital credit built on a Bitcoin-backed base;
👉 20% in traditional cash;
👉 10% set aside as reserves for when things get weird.
He's been taking this idea straight to Middle Eastern sovereign wealth funds - which makes perfect sense. If you're going to pitch trillion-dollar financial experiments, you start with the people who already manage trillions 💸
Source: BitcoinTreasuries.NET
This isn't crypto politely asking for a seat at the banking table. This is crypto asking what happens if we replace the table.
If something like this ever launches at scale, it would:
👉 Reshape how countries compete for capital;
👉 Redefine what a "safe" bank account even means;
👉 And turn early movers into global digital finance powerhouses.
So yeah - maybe one day, when you park your money... it won't just shuffle along at treadmill speed.
It might actually go somewhere 🏦

Source: Binance News / #BitDegree / Coindesk / Coinmarketcap / Cointelegraph / Decrypt

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$BTC