TerraKRW
Crypto Overview
Overview and Intended Utility
TerraKRW (KRT) was designed as a South Korean Won-pegged stablecoin on the Terra blockchain ecosystem. Its intended purpose was to serve as a stable digital currency that would maintain a 1:1 peg with the Korean Won, facilitating digital payments and cross-border transactions.
Historical Context
TerraKRW was part of the Terra ecosystem that collapsed in May 2022 when its sister token LUNA and algorithmic stablecoin UST failed catastrophically. The token was created by Terraform Labs, led by Do Kwon, who is currently facing legal charges related to the collapse.
Technical Implementation
KRT utilized the same algorithmic stabilization mechanism as TerraUSD (UST), which proved fundamentally flawed. The system relied on a complex interaction between LUNA and its stablecoins, where LUNA was meant to absorb price volatility to maintain the stablecoins' pegs.
Current Status
Following the Terra ecosystem collapse in 2022, TerraKRW effectively ceased operations. The token has lost its utility and peg, with trading volumes becoming negligible. The original Terra blockchain was renamed Terra Classic, and KRT tokens on this chain are essentially defunct.
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.