Hi, I'm PJ vote. This is the crypto island of a new series. In this episode, we document what in retrospect was the first domino to fall in the crypto crash of 2022, although at the time we didn't know it yet.

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So today, I just want to tell you about what happened this week. The week that began Saturday, May 7, 2022.

It was a really bad week in crypto, an unprecedented bad one. Every channel I follow, every tribe I usually use drop on, they were all talking about the same thing, this apocalyptic event.

This is a special episode from us because we are witnessing something historic right now in crypto. We are witnessing the largest event I think in crypto history.

This is the collapse of an entire stablecoin.

I just need to be clear that it's their music, not mine. Anyway, stablecoins in crypto are cryptocurrencies that are designed to hold their value.

Often, one stablecoin is worth one US dollar. A lot of people who trade bitcoin or eth or anything, they store their money not in a checking account, but in stablecoins.

And now, one of the biggest stablecoins, Tara US dollar, instead of being worth a dollar, like it was supposed to, is wavering.

And another huge cryptocurrency was threatening to go down with it.

It all looks nice and rosy at the beginning, and then suddenly, boom, it all comes crashing down.

If Tara USD actually crashed, the first thing that would happen is $18 billion would evaporate. That'd be the first thing.

But everyone watching understood that this fire would quickly spread throughout crypto.

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