Blockchain Insider Podcast by 11:FS · 11:FS

162. News: Terra terror as ex-Meta crypto chief launches Bitcoin payments start-up

·54 min·5 clips

Terra's collapse and Meta's crypto moves spark a deep dive into this month's biggest blockchain news.

This episode of Blockchain Insider covers major cryptocurrency news from May 2022, hosted by Maurício Magaldi and Visa's head of crypto, Kai Sheffield. They are joined by guests Jacqueline Malenik, a senior crypto reporter at TechCrunch, and Zach Lambert, a product manager at Plaid. The discussion centers on the dramatic collapse of the Terra ecosystem, new corporate crypto initiatives, and evolving global regulations. The hosts detail the catastrophic de-pegging of the algorithmic stablecoin TerraUSD (UST) and the collapse of its sister token, LUNA, which fell under $2. They reference the subsequent launch of a Bitcoin payments startup by ex-Meta crypto chief David Marcus. The episode notes Meta's Instagram is separately partnering with the Polygon blockchain for NFT integrations. Regulatory developments in the UK, Germany, and Portugal are also outlined as key topics. Jacqueline Malenik provides reporting context on the scale and speed of the Terra collapse, where UST lost 98% of its value. The conversation explores the mechanics of algorithmic stablecoins and the specific design of Terra's model. Insights include analysis of the "death spiral" dynamic between UST and LUNA that led to the rapid devaluation. The guests debate whether this event represents a fatal flaw for algorithmic stablecoins or a singular failure. A surprising claim is that such a high-profile collapse could paradoxically accelerate regulatory clarity by forcing lawmakers to act. The discussion contrasts corporate crypto strategies, comparing a focused Bitcoin payments startup with Meta's broader Web3 ambitions via Instagram and Polygon. One memorable moment involves analyzing the market-wide contagion fear triggered by Terra's failure, extending beyond direct holders. The tone is analytical and conversational, blending breaking news reporting with expert technical and product commentary. The style is educational but fast-paced, aimed at listeners who follow crypto markets closely. This episode is ideal for crypto investors and professionals seeking a detailed breakdown of the Terra crisis and its immediate industry implications. Listeners looking for introductory content or non-financial blockchain applications might find the market-focused discussion less relevant.

Listen to the show on

Apple Podcasts Spotify

Play clips from this episode More from Blockchain Insider Podcast by 11:FS