Good morning [%first_name |Dear Reader%],

Welcome to this week’s edition of Tokenised.

If you’ve been tracking the headlines, you know these past few days and weeks have not been kind to the crypto sector. The start of a new interest rate upcycle has resulted in investors pulling out of riskier assets, and many of the world’s most popular crypto assets have seen their values plunge.

But what about stablecoins? Pegged to real-world currencies, these were supposed to be the ‘safe’ crypto investments. Have they lived up to their claims?

The short answer is no.

Let’s dive in. 

Unstable pipedream: Terra’s unravelling puts the spotlight on crypto’s ‘safe’ tokens

If you’ve ever been to a casino, you know you can’t bet regular cash at a craps table. 

Instead, casinos require patrons to swap their money for chips (or tokens) and make their bets with them instead. Typically, this is done for two reasons: to make it easy to track money flowing in and out, and to create a mental separation between the gambler and their money.