UST has lost its peg to USD, and I do not forsee any attempts to repeg the stablecoin as being successful. This has significant implications for USDTUST or "Tether":
1.) The psychological "suspension of disbelief" has been broken. Reality has set in that stable coins can, and have, lost their peg. Previously there was no major stablecoin to have completely broken down in such a way that affected the whole market so significantly
2.) Tether has questionable collateral backing, and these backings will see significantly increased scrutiny in the coming days.
3.) If Luna can fall from such heights with such velocity, an unprecedented and tangible seed of fear is planted for all other crypto assets.
Time will tell, but there may not be much of it left.
1.) The psychological "suspension of disbelief" has been broken. Reality has set in that stable coins can, and have, lost their peg. Previously there was no major stablecoin to have completely broken down in such a way that affected the whole market so significantly
2.) Tether has questionable collateral backing, and these backings will see significantly increased scrutiny in the coming days.
3.) If Luna can fall from such heights with such velocity, an unprecedented and tangible seed of fear is planted for all other crypto assets.
Time will tell, but there may not be much of it left.