I think the point is a stablecoin's value is in being stable. Otherwise it's just another coin. So if a stablecoin can't retain its peg, then it has no practical utility and it's effectively worth zero.
Or it's an indication of how many people have sunk cash into the coin and are stuck HODLing in the hopes of it recovering, which... makes it just like any other coin.
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I think the point is a stablecoin's value is in being stable. Otherwise it's just another coin. So if a stablecoin can't retain its peg, then it has no practical utility and it's effectively worth zero.
It's effectively worth what you can sell it for, so 0.91USD for Terra.
This reflects a market consensus that there's about an 80% chance that it won't regain the peg, if you think about it.
Or it's an indication of how many people have sunk cash into the coin and are stuck HODLing in the hopes of it recovering, which... makes it just like any other coin.