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?
it is not terra luna that brining the market dumping instead it is the manipulator that bringing the issue constantly to make people panic more , we have so many big issues in the past and even scams here and there , also there are hacking of big exchange but what happened? market always recovered right?
it is become exaggerating to when the problem arise now and makes the market dumping .