How Terra's UST Collapse Impact stablecoins like USDT and USDC!
Even though its tokenomics are completely different, there’s been some concern that Terra’s troubles could cast doubt on other stablecoins.
“Tether holders should feel very secure that Tether will hold its peg since it is dollar-backed and market forces do not affect it,” says Co-founder Collins
Brent Xu, CEO of Umee said he’s optimistic UST will be able to restore its peg. But he pointed out that USDC and USDT aren’t totally immune to market trouble.
Derek Lim, head of crypto insights at derivatives exchange Bybit, said that while Terra’s fate doesn’t pose a direct threat to USDC or USDT, they are still linked in a big way through the Curve 3pool, which allows investors to trade stablecoins for one another.