The impact of an impulsive loss has taken over $15 billion from the crypto value. And there have been reports of self-harm by people who have lost most of their savings in UST.
Many people have sold large portions of their crypto portfolios to make up for some of the losses, causing the entire market to collapse.
Even though UST was an unusual algorithmic stablecoin unlike others, questions also arise over the stability of other stablecoins, such as Tether and USDC. Borough says that, if UST had been attacked, similar plays could have been made against others.
“The question on our minds is, did what happened to UST spread to other stablecoins? If the big whales find a playbook here that works to attract UST, we worry that they will move to other stablecoins of the market. Can reuse that playbook across regions.
The impact of UST’s collapse has also attracted the attention of powerful politicians and regulators. To this Treasury Secretary Janet Yellen said that:
“The deepening of the UST simply shows that it [stablecoins] It is a rapidly growing product and has rapidly increasing risks.”
In addition, Securities and Exchange Commission member Hester Pierce said on Thursday that:
“One Place We Can See Something” [regulatory] The movement is around stablecoins.”
It has been a very rough week for Terra developers since the collapse of UST, with people questioning the use of bitcoin reserves. To this, the Luna Foundation Guard tweeted that its bitcoin reserves had dropped from 80,000 to just $313.2.2 billion to $9.2 million.
And also mentioned in the tweet about the remaining reserves, saying that they will be used to “first compensate the remaining users of UST, the smallest holders.” kwonThe CEO of TerraForm Labs has controversial plans to revive Luna as well.
In response to all of the above, Terra Officials tweeted Regarding the previous resolution yesterday resolution 1188 is passed, “Burn the remaining UST into the community pool + cross-chain liquidity incentive UST.” The application is still unsuccessful because it is experiencing technical errors, as it tried to disappear from the community pool and exceeded the current number of USTs.
In addition the new proposal Proposition 1747 has also come into force with several updated parameters, the proposal that will destroy the UST remaining in the community pool and the cross-chain liquidity incentive UST, if voted down.