$USDC

No, $USDC is not the correct answer.

Here’s the distinction:

$USDC (USD Coin) is a fully backed stablecoin issued by Circle and backed 1:1 with US dollars or equivalent reserves. It is not algorithmic.

The quiz question specifically asked about the collapse of an algorithmic stablecoin-governance-token pair in 2022 that erased over $40 billion in market value.

That collapse refers specifically to:

✅ UST / LUNA

UST was an algorithmic stablecoin.

LUNA was its governance and stabilization token.

The system broke when UST depegged from the US dollar, causing LUNA to hyperinflate.

Over $40 billion in value was wiped out almost overnight.

So again, the correct answer is UST / LUNA, not USDC.