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Cryptocurrency TerraUSD Falls Below Fixed Value, Triggering Selloff

One type of cryptocurrency, a so-called stablecoin, is meant to keep its value at $1. But on Monday, the third biggest stablecoin, TerraUSD, fell to $0.980427, causing a flood of investors to sell their holdings.

Stablecoins get their name from their being tied to the value of government-issued currencies, such as the dollar. These $1 pegs are usually backed by Treasurys, cash and other dollar debt that is easily sold in times of market stress.