unbelievable, stable coin is liable to dump?

[Seerge]

This is Cryptocurrency, a Cryptocurrency project has easily created a stable coin which is equivalent to USD. But after the project was destroyed, the value or price of the stable coin was also destroyed. This is because there are no special rules in Crypto when the project must create a stable coin, so that when a crash occurs, investors are the ones who lose.

[dekafee79]

This is Cryptocurrency, a Cryptocurrency project has easily created a stable coin which is equivalent to USD. But after the project was destroyed, the value or price of the stable coin was also destroyed. This is because there are no special rules in Crypto when the project must create a stable coin, so that when a crash occurs, investors are the ones who lose.

I think that's normal in crypto currency, If stable coin will dump.
But It's strange for Luna foundation.
I personally prefer in BUSD as my trading pair than other.
Because I often trade in binance exchange

[Speaker]

everything that is centralized has a chance to become a scam. It's just that the bigger you are, the harder it will be to pull it off and the higher the responsibility.

[Jaephoenix]

It's happening in many crypto projects now. Terra's UST, Dei and now EvoBridge stable coins. All unpegged. Unfortunately it was caught up in EvoBridge furore, it's so bad that the USDC is 4xUSDT and there is no liquidity on the bridge

[Ghozrd]

That's what we see, there is no guarantee of stablecoins in crypto to be stable as they promise, there is always a problem because there is no guarantee of price transparency to keep stablecoins stable. financial guarantees and gold are very much needed, but in fact USDT also received a warning from financial supervisory institutions for not providing information on how much USD they backed up for USDT, on the other hand UST collapsed because of their de-pegging error to keep UST prices stable and in fact UST well below the USD.

[naitik01]

The stable coin remains almost stable, there are minor changes in it, but the accident of Luna destabilized all the stable coins for once, but this situation lasted for a short time.

[Alichlas92]

UST is an algorithmic stable coin unlike the usual stables like USDT and BUSD that are pegged on a 1:1 ratio with the United States Dollars (USD), What this mean is for every BUSD or USDT that is in circulation, there's a dollar representing it that is locked in a vault. The case of UST, the value is pegged algorithmically to the native asset Luna, to always keep it value stable at 1. What is happening right now is a Proof that algorithmic stables can be attacked and exploited as we see ij the case of UST.

besides USDT and BUSD there are several stablecoins. other than stablecoins USDT and BUSD are they the same as UST?

[Afony]

All the same, these USD, BUSD will be small losses associated with a fall or increase in the dollar price, these coins are tied for the safety and reliability of the entire cryptocurrency. Looking at the market now, these coins are well suited for the safety of funds so as not to lose everything.

[silkytakyaan86]

You are right. It happened. For example, Terra usdt. All this is certain in the crypto market. As there is a market in the market downturn right now. In this, everything is flowing downwards.

[Lanirex]

Maybe this happened only in UST, not in other stable coins, and the price of UST experienced a dump due to the destruction of the Terra Blockchain and the LUNA Coin. They are afraid of losing the value of their assets so UST holders sell their coins at a low price, this is strange but this is what happened.

[Jaephoenix]

It is happening frequently these days. Happened to Dei and now Evo Bridge. EvoBridge which is a common multichain swap has been illiquid for quite some time. Swaps don't work, especially from Emerald Oasis paratime to other blockchains like BSC, Ethereum wouldn't get stuck for days. USDT dumped to $0.25 but is recovering now

[Speaker]

Maybe this happened only in UST, not in other stable coins, and the price of UST experienced a dump due to the destruction of the Terra Blockchain and the LUNA Coin. They are afraid of losing the value of their assets so UST holders sell their coins at a low price, this is strange but this is what happened.

It's just an algorithmic stablecoin with inherent weaknesses that have been exploited.Then cascading sales, the entry of the asset into the "spiral of death". For some reason, I think that the fraudulent schemes of the founder, who recently sold off assets for a large sum, are also involved here.

[bayiajaib]

I am wondering why a stable coin experience a big dump like what is currently happening to UST stable token on the Luna network. as at the time of writing this post, UST/busd pair is Trading at $0.357 to Busd. What a superised at this development, but it could need the forum members to explain what is happening to the UST stable coin.

That's the fact, stable coin is liable to dump.
Because It's crypto.
It's  happened in UST stable because Luna effect.
So, be careful mate.

[yohananaomi]

I am wondering why a stable coin experience a big dump like what is currently happening to UST stable token on the Luna network. as at the time of writing this post, UST/busd pair is Trading at $0.357 to Busd. What a superised at this development, but it could need the forum members to explain what is happening to the UST stable coin.

That's the fact, stable coin is liable to dump.
Because It's crypto.
It's  happened in UST stable because Luna effect.
So, be careful mate.

logically the stablecoin should always follow developments or equal to 1US$, but what happened with UST was beyond control and habit in general. Of course this is quite confusing why there can be a decline and not always the same as US $ as the stablecoin name implies.
Is it because UST is not backed by bond assets like other stablecoins, but only because it relies on bitcoin reserves that have been stored? Everyone will be more careful with cases like this.