Quote from: keyscore44 on May 09, 2022, 09:39:10 PM

Quote from: diffract on May 09, 2022, 12:02:42 PM

We know algorithmic stablecoins are new and risky. UST is backed by Luna, and the foundation behind Luna bought so much Bitcoin I believe they're now amongst the top 10 holders.

If UST loses its peg against the dollar and Luna isn't enough to bring it back up, the foundation will have to sell some of its BTC to keep the peg, which applies sell pressure on BTC and brings it down along with the whole crypto market.

Is this what's happening now already?

I think that the Luna treasury alone is not able to make the entire cryptocurrency market drop so drastically.
However, the financial security of Luna that you write about seems to me very unstable and in my opinion this may be one of the reasons why this project may be in danger of collapse.

This is absolutely the reason for the market sentiment, 80k btc was withdrawn and causing instability Luna stable coin loses it values dropping drastically so nothing much rather that Luna but seems the market is gaining it strength back since the launched of Luna 2.0.