So we all know that the historic de-pegging of the TerraUSD this week sent shockwaves through the financial world.
And it’s not the first time a stablecoin loses it peg. Neutrino lost its peg back in April, and TITAN/IRON last year.
And today, USDT fell to $0.95, making people nervous.
In a Senate hearing on Tuesday, US Treasury Secretary Janet Yellen referred to UST by name as she once again asked Congress to pass legislation regulating stablecoins.
If more stablecoins get rekt, I’m afraid stablecoins will be questioned more often and it will be an easy & logical step to CBDCs for “your safety”.
My tinfoil-hat-me tells that IF this happens more often.. central banks are fucking with stable coins to push their CBDC agenda and urge governments for regulations. But I have nothing to back this up. Algorithmic stablecoins have flaws in the first place.
Anyway… I hope everyone is doing well and have diversified in different stablecoins. Please be careful. Right now I learned it the hard way. Had some UST sitting on the side to buy the dip, but UST dipped.