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The Week in Business: Crypto’s ‘Death Spiral’

In what some are calling a “death spiral,” the value of a number of digital currencies plunged last week, rattling investors’ faith in crypto markets. The implosion was particularly shattering for TerraUSD, or UST, which is called a stablecoin, meaning that it is pegged to a stable asset and should not fluctuate in price. But fluctuate it did: A big sell-off in a sister cryptocurrency sent UST to a low of 11 cents on Friday as Luna, a token closely tied to UST, cratered to $0. Bitcoin has been falling along with the Nasdaq, a benchmark that’s weighted toward technology stocks, making an investment in cryptocurrency just as risky as any other tech stock. The crash drives home an unpleasant reality for investors — that an asset they hoped would be transformative has not fulfilled its promise.

Elon Musk said that he was putting his $44…

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