To be honest, I never understood why people would have so much money in a stablecoin. Sure, you have money in Luna because of the price appreciation, but with UST, its a coin that is pegged to the dollar, yet carries no extra incentive but extra risk. You could say exchanges needed this because they weren't able to transact in dollars, so selling in and out of crypto required you to put it into something else that was stable. But there are enough exchanges these days that allow you to hold dollars, Kraken and FTX comes to mind.
Max just did a video on a possible rescue plan for Luna/UST. I'm a bit disappointed because he sounds like he is hurting, and yet his channel is probably bringing in so much money, that he can absorb whatever loss he had in Luna/UST. He makes the case that people thought that UST was safe, and thinks the holders should be compensated even more than holders of Luna. But once again, I just don't understand why you would put so much faith in a derivative of a dollar.
Maybe now, especially with prices coming down for all L1's, people were holding onto dollars waiting for a possible entry, so its especially bad timing for UST to fail. But I'm still surprised to learn people had to much in UST since it wasn't appreciating. (oh wait.... maybe they were doing the yield farming for guaranteed 20%.... so they figured the UST is safe, and 20% was therefore pretty much a guaranteed return)
I lost a bit on Luna coins, and even bought 100 coins when it was 20 cents.... LOL. But I think this is overall a very good thing for bitcoin. When its in your hardware wallet, there is no counterparty risk. Luna breaking should actually bring more traffic to bitcion once the dust settles.
