What a way to go.
The Terra network and its CEO, Do Kwon, have risen to the top of the crypto business thanks to big-name investors. However, in a matter of days, there was a collapse just last month.
The price of the then-$18-billion algorithmic stable coin terraUSD (UST), designed to keep a $1 peg, started to sway on May 7 and dropped to 35 cents on May 9. The LUNA token, which was supposed to help steady the price of UST, had dropped from $80 to a few cents by May 12.
It's a clear rise and fall situation. It's a rise and fall situation. Do Kwon's goal to build a price-stable crypto payment method to compete with the largest e-commerce platforms came crashing down in the end, dissipating the savings of investors.
The breakdown of Terra's ecosystem shook the blockchain and cryptocurrency world. The widespread anxiety, uncertainty, and doubt drove market-leading cryptocurrencies Bitcoin (BTC) and Ether (ETH) below $27,000 and $1,800 on certain exchanges.
It's like a domino effect.
What does this tell us?
Crypto exchanges require sophisticated risk management systems, such as Centralized Exchange (CEX). Crypto exchanges function similarly to stock exchanges in the financial world. Crypto exchanges allow you to buy and sell blockchain-based tokens and coins in the same way that stock exchanges will enable you to buy and sell shares and derivatives.
Centralized exchanges have several advantages, including the fact that they are excellent for crypto novices. CEXs' user-friendly interfaces and centralized company assistance simplify retrieving your crypto assets. Furthermore, with more users active on centralized crypto trading platforms, centralized exchanges ensure better liquidity.
Risk management is a vital aspect of your business continuity planning. BCP involves specifying all risks that could impact the company's operations, making it a crucial element of the risk management strategy.
Performing a specialized Business Continuity Risk assessment allows you to analyze all of the resources in scope as well as the risks they pose. It also assists you in validating current controls and assessing any additional controls that could be implemented.
Is your company ready to face business threats? It may not involve crypto exchanges, but there are many issues that you should be prepared for.
You need to take your business continuity to the next level.
BCM next can take you there.
Using artificial intelligence and data analytics, we will orchestrate everything. We ensure your effective recovery from today's and tomorrow's disruptions.
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