These French crypto players trapped by UST
The collapse of the UST has weakened several crypto service providers that were offering returns.
👉 The news. UST stablecoin crashed last week.
👉 Why it matters. It was at the heart of many yield services offered by French platforms.
👉 Background. This case comes at a time when the European Union is debating future crypto regulation.
A real cataclysm. Last week, the crypto universe experienced an almost unprecedented crash. In just a few days, the Terra project, one of the biggest blockchains on the planet, collapsed like a house of cards, costing investors more than $50 billion. To give you an idea, that's the equivalent of the capitalisation of a major European bank.
The fall of the project created by South Korean Do Kwon spared no one. From Asia to America via Europe, hundreds of thousands of investors have been affected, but not just because of the collapse of Luna, the token of the Terra blockchain.
Some investors have also lost out big in lending operations, i.e. loans, with UST, Terra's stablecoin, which were offering annual returns of more than 10% on average. This was the case for thousands of French investors, who had placed their money with French companies, such as the start-up Just Mining, run by Owen Simonin, aka Hasheur on YouTube (560,000 subscribers).