TerraKRW
Crypto Overview
Background
TerraKRW (KRT) was a stablecoin pegged to the South Korean won that operated on the Terra blockchain ecosystem. It was designed to maintain a 1:1 value with the Korean Won through an algorithmic stabilization mechanism.
Intended Utility
The intended purpose of KRT was to serve as a stable medium of exchange for South Korean users, facilitating cross-border transactions and providing a bridge between traditional finance and cryptocurrencies. It was meant to be used in conjunction with the Terra payment ecosystem for e-commerce and daily transactions.
Current Status
As of May 2022, following the collapse of the Terra ecosystem, KRT has effectively ceased operations along with other Terra stablecoins. The token is no longer maintaining its peg and has lost its practical utility. Trading and usage of KRT have essentially stopped across all platforms.
Technical Implementation
KRT utilized the same algorithmic stabilization mechanism as TerraUSD (UST), which relied on the LUNA token for maintaining its peg. This system ultimately proved unsustainable and contributed to the collapse of the entire Terra ecosystem.
Crypto Impact
To assign a comfort level investing in TerraKRW from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to TerraKRW.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
We will review your contribution for accuracy before publication.
Importantly, you can review listed contributions and vote on which one you think has the greatest impact, positive or negative.
You only have one vote per asset so use it wisely.
You can change your vote if you change your mind.