With me, its doesn't have to face a disaster like Terra, FTX,... and in fact, despite legal regulations on privacy coins, they will still have their own market support in a way that cannot be banned be absolute.
Yup! Losing users because your project is a scam/hoax or was just a victim of such is a thing but being banned by the authorities is another. Many people are still going to use it just a lot more discreet now.
If it is still doing perfectly fine then there’s really no reason for everyone else to stop using it.