If it happend to TerraUSD, why can’t it happen to other stablecoins?

Prior to the current events of LUNA/TUSD crashing to 0 everyone was hyping it around here and having only strong words about those two. Considering what happend this week, what are the chances of the same happening to other stablecoins? Or better said, why can’t it happen to other stablecoins.. let s say USDC, BUSD because those two are also hyped around here and they have a pretty big market cap aside from USDT which is the most popular.

I see alot of hate towards USDT yet it never crashed and withstood all the bearmarkets and the most hyped stablecoin as of recent times (TUSD) fell apart at the first glimpse of a bear coming out of the woods. I am really really worried now about the whole situation.

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20 thoughts on “If it happend to TerraUSD, why can’t it happen to other stablecoins?”

  1. Because stablecoins like USDC, USDP, BUSD, and TUSD are all fiat-backed stablecoins. UST is an algorithmic “stablecoin” that relies on the burning and minting of LUNA to exchange back and forth. USDC, for example, is backed by 1 dollar per 1 USDC.

    Algorithmic stablecoins are notorious for not working in the past, which is why fiat-backed stablecoins should be your go-to.

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  2. It can happen to any stable coin, less likely to happen to things like GUSD, USDC, USDT (maybe) as they are backed by actual FIAT and not a highly volatile asset.

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  3. UST was an algorithmic stablecoin so it works a little differently.

    That being said, I don’t think there’s any guarantee that some kind of fuckery can’t happen with other stablecoins either

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  4. This fiasco just reminded us

    No one knows shit about fuck

    Anything can happen in this volatile sector

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  5. It hasn’t happened, yet.

    One of the things I learned in crypto is to consider every worst case scenario in every coin even BTC.

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  6. >everyone was hyping it around here

    Some were hyping, some were urging caution, seems you’ve reached for the top shelf here.

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  7. Oh the stupidity. Big difference between stables backed by fiat, bonds, etc, & those that are algorithmic.

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  8. Nothing in finance is “secure”.

    Some things are riskier, but even the safest investment can crumble under the right circumstances.

    The only thing that surprises me more than the fact many didn’t appear to realize this, is how many appear to still not realize.

    You make money by risking money. Simple as. The more money you are due to make, the higher the risk, no matter how “safe” it claims to be.

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  9. Because terra was not just an algorithmic stablecoins, which isn’t the most stable, but way worse, it was a circular Ponzi based algo stable with Luna and UST being co-dependant.

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  10. The most revealing thing to me about UST’s crash is how many people there were in the first couple of days citing UST’s whitepaper as proof that it couldn’t crash for long due to its algorithm, and calling everyone who said otherwise an idiot or moron. It seems a lot of people who claim to understand whitepapers are actually bullshitting us, and that a huge red flag for this kind of bullshit is when you spot them insulting and belittling others for allegedly *not* understanding ‘the whitepaper’.

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  11. If hedge funds, this is the rumor I’m sure information will come out in the coming weeks, seek to do it again then there is a good chance it will happen again.

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