Quote from: Silberman on Today at 12:55:28 AM

Quote from: UpAgain on September 24, 2022, 11:10:48 PM

Could massive crash impact stable coins? like USDC or BUSD

For example if we will have a massive crash due to regulation and BTC is going to 5-12k how would it effect stable coins?

During a massive crash I have seen coins like USDT trade for 0.90 dollars, so they can be affected if there is an important crash in the price of bitcoin, however after the crash is over stable coins go back to their original value, so in a way they can be a source of unexpected gains despite the crash as you can easily earn some money during those difficult times, however make sure the stable coin that you are buying is a reputable one as you do not want the same that happened to those which invested in UST to happen to you.

Stablecoins like USDT or BUSD backed by USD or government bonds and some other real assets, then I think if there is a big crash with bitcoin, it will barely affect stablecoins. Here we're just talking about bitcoin's price drop, not bitcoin's death or something that makes bitcoins no more. Because bitcoin disappears, the crypto market will also disappear.

USDT losing peg is due to the loss of confidence in stablecoins caused by UST, algorithmically stable coins will suffer if bitcoin or other altcoins plummet as algorithmically stablecoins are backed by the cryptocurrency.