business
Strategy's STRC slump prompts Terra comparisons that don't hold up, says analyst
Key takeaways
- While the parallel is spreading on social media, it also misreads what STRC actually is, per Benchmark Research.
- STRC is designed to trade around $100, and it fell to an intraday low near $82.53 last week before closing around $88.65 on Monday, roughly 11% below that level.
- Critics have called that a "depeg," borrowing the term used when a stablecoin loses its $1 value.
While the parallel is spreading on social media, it also misreads what STRC actually is, per Benchmark Research.
Two features invite the comparison. STRC is designed to trade around $100, and it fell to an intraday low near $82.53 last week before closing around $88.65 on Monday, roughly 11% below that level.
Critics have called that a "depeg," borrowing the term used when a stablecoin loses its $1 value. STRC also pays an 11.5% annual dividend, a yield that echoes the 20% return Terra's Anchor protocol advertised before it imploded. A high yield and a price drifting below its target are enough to trigger the memory.
Article preview — originally published by CoinDesk. Full story at the source.
Read full story on CoinDesk →
More top stories
Also covered by
Aggregated and edited by the Scoop newsroom. We surface news from CoinDesk alongside other reporting so you can compare coverage in one place.
Editorial policy · Corrections · About Scoop