UST de-pegging and LUNA crash… what I think about it

For those of you who are not aware of this huge event in the crypto world, you can take a look at a pretty good summary provided by KelvinlearnsInvesting below. 

At the time of writing, UST is trading at USD$0.15 more than 85% off peg and LUNA is trading at USD$0.00025 down from around USD$80 a few weeks ago…

Personally, I do hold some position in UST in the anchor protocol and the de-pegging does impact my crypto portfolio quite a bit. Being in the crypto world, I am mentally prepared for something like that to happen. Although it does pain me to see the value of something that supposed to be "stable" collapse more than my Altcoin position, I am not losing my sleep over it. I'm Just checking my CPF account and using my CPF calculator more often to remind myself of my financial safety net…

UST, being the first decentralized algorithmic stable coin backed only by decentralized currency LUNA/Bitcoin and not by centralized USD or dollar-denominated assets like U.S. Treasury securities, it's collapse, in my opinion certainly tells us how ready the crypto space is for decentralization. In times of crisis, people still trust the USD, a centralized currency. It's still the currency that people fled to as it is still the reserves currency of the world and is widely recognized and transacted. The de-pegging of the UST definitely made things worse and eroded the trust people have on decentralization further.

I am sure this incident will also prompt the US government to speed up their effort in regulating the crypto space especially on decentralized finance. As with all new technology, Crypto will see their share of ups and downs, success and failures before finding their space in the world. In the meantime, I'm keeping crypto to a manageable size in my portfolio and hunker down for the ride.

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