Quote from: diffract on Today at 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?

Yes, UST can collapse but i doubt that it would bring everything down. It would just affect some coins. USDT has been suspected not to hold as well but as they have insanely well backed up it with real world value, it won't crash.