Renowned Bitcoin critic Peter Schiff took a dig at Terra and tweeted that Terra USD is supposed to be a stablecoin that trades at parity with the US dollar.
But unfortunately, UST is trading below 80 cents. He also took a jab and said that maybe people at Luna do not realize the meaning of stability in stablecoin.
And at the end, he blamed everything on Bitcoin and said that a token that Bitcoin backs is backed by nothing.
#TerraUSD is supposed to be a stable coin that trades in parity with the U.S. dollar. Yet #UST is now trading for less than 80 cents. Maybe the guys a #Luna don't realize that the most important part of a stable coin is stability. A token backed by #Bitcoin is backed by nothing!
— Peter Schiff (@PeterSchiff) May 11, 2022
This is not the first time Peter Schiff has taken a dig at bitcoin. A few days back, he questioned the stability of Bitcoin at the $36k level.
LUNA’s price falls
LUNA, UST’s price has plummeted rapidly, knocking it off its pedestal. Even though UST has recovered most of its losses, it had previously fallen as low as $0.6841, indicating major problems and fears about a possible collapse for this crucial stablecoin.
Several components of the crypto economy rely heavily on the stablecoin market. Market contagion is possible if investors lose trust in stablecoins’ underlying worth. Because of this, a large number of investors are keeping a close eye on Terra’s LUNA and UST coins.