Feels like LUNA in terms of how the value backing by other crypto but completely different since it’s Bitcoin backing them while UST is backed by their own currency too. An attack to the company will clear do a double damage to them because they are same while Tether is using Bitcoin which is a different entity. Bitcoin is performing very solid for many years and also they only use 15% of their revenue unlike dumb Luna that directly pegged the price on their token value by manipulating the token supply.
Tether is the most use stablecoin in crypto market. I think this move is very good in long term since they are generating huge profit in bear or bull season because trader never stop trading stablecoins.
That the fact people will not stop trading the stablecoins but my concern is about their pegge potential because whenever I use to visit their reserves, it always put me into a new curiosity that why and how they can decide to put all of their reserves (Maximum Value) in the Security Bonds, Such type of decisions can lead them towards the destruction I know many people do trust USDT but because many do should we do too. A scenario can change everything because on the centralized exchanges liquidity behaves differently if some try to manipulate it with a good amount of money they manipulate it and I am not sure how much Teather is ready for such a crisis.
LUNA's Ecosystem apparently was great but there were some in death fundamental mistakes as one of them mentioned by you, Bitcoin is another entity I know there is no one here to manipulate the total supply, but for the security bonds who knows?