UST is an algorithmic stablecoin a.k.a. backed by the LUNA token. Hence it's pretty much almost backed by thin air; hence why Luna Foundation Guard had to purchase a good amount of bitcoin to protect the peg if it's the case that there's a bank run.
And yea, it happened:
Peg broke due to UST having a huge bank run, with people selling the UST for other stablecoins (hence pushing down the price of UST). Now for the peg to be restored to $1, Luna Foundation Guard had to liquidate a crap ton of bitcoin on their reserves just to push UST back to $1, further pushing down the downward pressure on BTC.
alot traders didnt understand this information , and they keep holding bitcoin , ust or luna. moreover see in few days ago Luna supply increase massively and its used to dumped for pressing UST pegged. more crash coming, and i think exchanges should stop this shit before more investors harmed. Do Kwon and team will always remembered as failed developers and maybe will backlisted in crypto market if build new project.
