Are you looking at USDT after the UST stablecoin crashed? Are you in presumption, Will USDT ever crash? USDT and UST both are stablecoins, Isn’t it? Then, why and how a stablecoin can crash? Is USDT the next victim?
USDT is the Third largest token with $65B Capitalization and most accepted Trading Pairs in the Cryptocurrency Market.A Big No, USDT will never crash like Terra USD.
Well, My name is Vikash Yavansh and my hand is in the Crypto Market over years. And in this Blog, I will be covering these queries in detail and also provide you the ways to avoid a crash loss.
Reasons why USDT crashing is not Possible?
Here are the reasons what was the wrong with Terra USD (UST) which drowned it and what’s the benefits of adopting USDT. Also how USDT will tackle those if such situation occurs again with it.
What will happen if USDT crashed?
Before answering this question, we need to Investigate what actually happened to Terra USD. And we do have a just passed nightmare. We need to deeply review the consequences happened after the Terra USD collapse.
What happened just after Terra USD collapse?
I am taking an illustration of Demonetisation in India by Indian Government in November 2016. Suppose, You are an Indian Guy and You had a ₹500 note before day the Demonetisation occured. The Next morning, you went to grocery and bought items worth ₹500. When you try to pay your Bills through cash ₹500 note, Should the vendor accept the note?
Definitely, A Big No. Did you just consider the reason why he didn’t?
Well, That’s because, the Old note couldn’t remained valid currency then or you may also tell that the value of the very ₹500 note became Zero. That’s exacctly what happened with Terra USD back in May 2022. Let’s have a quick view.
- Reserve Bank of India regulates Indian Rupee Currencies (INR) ~ same as ~ Terra USD was pegged with its Terra Luna Blockchain.
- Reserve Bank of India on behalf of GOI devalued ₹500 currency note ~ same as ~ Collapse of UST rapidly dropped the value of the Terra Luna (LUNA) coin.
Let’s get back to our Parent Topic What will happen if by any chance USDT Collapsed just like UST did?
First of all, This sounds like asking Warren Buffet to invest in Cryptocurrencies. 😆HaHa! Both are next to Impossible. But if by any chance, This nightmare occured, that might be the end of Cryptocurrency Revolution.
As USDT is the most accepted pair of tokens in the world of cryptocurrencies and the third largest by capitalization after Bitcoin and Ethereum as per CoinMarketCap, All the USDT pairs which are being traded in, will lose its value including Bitcoin & Ethereum just like Terra Luna touched the bottom.
Or You may say in One word simple answer, Tata Good Bye to Cryptocurrencies.
USDT Fear and Greed Index
While trading in cryptocurrency market, I always keep my third eye on Realtime Fear and Greed Index, with matching Time Frame. On this website GreedAndFearIndex.Com, You can view each individual crypto token’s Realtime Fear & Greed Index to perfectionate your Entries & Exits.
You must consider your bare time to get through USDT Realtime Fear and Greed index.