unbelievable, stable coin is liable to dump?

[Bobcrypto]

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.

[mohdelayo]

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.

[Hisbullah]

yeah, it's unbelievable, stable coin dumped.
UST being interesting topic to discuss now.
But It's just panic selling and panic buying,
we should good analysis to do.
Be careful to buy or sell.

[alltalk]

UST is not the same as other stable coins, it doesn't have a backup with actual cash. The price of UST cannot be as stable as other stable coins. It is also related to the big crash in Luna, UST price is influenced as well. So, it is not surprising if the UST price can drop from $0,8 to $0,3. However, the price may recover if Luna price can increase again in the future.

Related sources:
- https://www.coingecko.com/id/koin_koin/terra-usd
- https://mashable.com/article/ust-luna-what-is-happening

[DAMKAR]

I think If the stable coin didn't back up by  actual cash, Its risky.
So, be careful.
UST was going down because we know about  several news  about Luna and UST.
Better to buy more other coins,

[pelana vreo]

This situation becomes an important experience to be careful in choosing a stable coin, UST is not backed up with USD, but backed up by LUNA.
I think, it would be great if the UST is backed up with Gold to avoid a big dump like the current one.
The current price of UST is $0.17 and I think it will continue to fall, when more people are selling it.
The developers must take responsibility for this, they must take swift action so that the stable coin UST can return to its initial price and increase the confidence of crypto investors.

[TomPluz]

What is happening with UST is a big revelation tat not all stablecoin are really stable and there can be those that are backed with something that can easily lose value. Actually, UST is not that a very popular stablecoin and this is not pegged to any fiat money in comparison to the most popular stablecoin like USDT. Had it been me, I would not allow UST to categorize itself as stablecoin because it is not and never will be. Unfortunately, UST affected the whole cryptocurrency market including the dump of BTC and other major coins. One weak link is all it takes to push the whole crypto market into the brink of collpase...am just imagining what can happen to us if it will be USDT that will collapse...wow!

[Istiak]

This happens because of some bad actors from the markets. They use their UST reserve to break the page and when LFG tries to create 4 pool by withdrawing all of the remaining UST from 3 pool, then those bad actors dump their UST in the market which broke the peg. An auto system triggered where luna was minting and try to buy back UST from the market to bring back the peg. But the panicked market increase sell pressure and team also multiply mining capacity which worsens the situation. Overall bad management of the team.

[de_prof]

This happens because of some bad actors from the markets. They use their UST reserve to break the page and when LFG tries to create 4 pool by withdrawing all of the remaining UST from 3 pool, then those bad actors dump their UST in the market which broke the peg. An auto system triggered where luna was minting and try to buy back UST from the market to bring back the peg. But the panicked market increase sell pressure and team also multiply mining capacity which worsens the situation. Overall bad management of the team.

Yeah, it's crypto we will see the strange and unbelievable happening.
UST , many people said It's stable coins.
But was going down.
I think UST is not stable coin now.

[Bobcrypto]

Yes, I think you are correct, UST could only be a stable coin if it is backed with the USD or probably with gold. Again the team should wake up to the challenges to redeem the project potential and the hope of investor plus it's users or risk  Luna being delisted from all exchange. Allready, some of Luna markets (like, coin ($)margin futures, margin tradinng pairs) hs been delisted on many reputable exchange across the globe.

[elbans89]

Yeah, It seems funny ,if stable coins become unstable or dump.But UST is not back up by gold or cash money / USD.
It's the problem why , this coin is not stable coin.
Hopefully UST will touch 1$ again soon.

[gurunanakji777]

I feel it is an intentionally big manipulation by the big players. We all know UST is an algorithm-based stable coin as compared to BUSD and USDT that are pegged with an equal ratio of USD so that is more reliable in my opinion but UST collapsed the trust in the stable coin also. Let's see what UST dev KWON will do to stand it again in the market but it's not easy to gain the trust of the investors and traders.

[anshor1]

I feel it is an intentionally big manipulation by the big players. We all know UST is an algorithm-based stable coin as compared to BUSD and USDT that are pegged with an equal ratio of USD so that is more reliable in my opinion but UST collapsed the trust in the stable coin also. Let's see what UST dev KWON will do to stand it again in the market but it's not easy to gain the trust of the investors and traders.

Every people are waiting the de Kwon decision, But I think UST willnot be stable coins again.
Maybe will migrate to other coin or rebrand.
I agree with you, It's just a game of big players.

[pacar_tiri]

I feel it is an intentionally big manipulation by the big players. We all know UST is an algorithm-based stable coin as compared to BUSD and USDT that are pegged with an equal ratio of USD so that is more reliable in my opinion but UST collapsed the trust in the stable coin also. Let's see what UST dev KWON will do to stand it again in the market but it's not easy to gain the trust of the investors and traders.

Every people are waiting the de Kwon decision, But I think UST willnot be stable coins again.
Maybe will migrate to other coin or rebrand.
I agree with you, It's just a game of big players.

You're right Luna, UST are the just game of bug players.
We should know about this condition.
I suggest don't invest on both, those are really risky
Better to choose other coins.

[Alcor]

Yeah, It seems funny ,if stable coins become unstable or dump.But UST is not back up by gold or cash money / USD.
It's the problem why , this coin is not stable coin.
Hopefully UST will touch 1$ again soon.

A stablecoin cannot be backed by a cryptocurrency that is inherently highly volatile. UST, as far as I know, was backed by the regular Luna cryptocurrency, and as soon as it got in trouble, UST got into trouble too. If this happens, states will take up strict regulation of both cryptocurrencies and stablecoins. Then the entire cryptocurrency market will suffer.