What are the side effects of UST losing its peg?
As TerraUSD (UST) has lost its dollar peg, the issue of the implications on the larger crypto market remains. Here are a few examples of how UST adoption might have a far more significant impact than planned.
Startups integrated UST into their products
One of the significant risks is the widespread adoption of the Anchor Protocol, which was launched in 2020 to allow for $UST savings, lending, and borrowing. The protocol piqued the interest of not just retail investors but also crypto start-ups. With a 20% APY, it drew significant investor interest, reaching an all-time high in Total value locked (TVL) of $17 billion.Given the current state of the $UST, it will be clear soon which companies used Anchor Protocol in their back-end. Stablegains, for example, raised $3 million in April from Y Combinator, SN Ventures, and Moonfire, among others. According to its documentation, the startup moves customer funds into the Anchor protocol to generate yield.
This event demonstrates how DeFi Legos, a concept used to describe the possibilities of integrating DeFi protocols, may have a significant damaging effect if one of the building blocks is broken. Something that might influence Venture Capital's perspective about investing in apps that integrate stablecoins.
Hedge funds and projects that hold UST
Given the widespread adoption of UST by the crypto industry, there is a good chance that many investment firms and crypto projects held some of their treasury in the stablecoin. It is unclear how much exposure to the stablecoin there was, but this could also impact funds that may be forced to sell other assets, and projects may lose some of their treasury.The Arrington Anchor Yield Fund, which launched on November 4, 2021, is an extreme example. The fund, which had a cap of $100 million for qualified investors, essentially invested investor funds in Anchor Protocol. With examples of this being made public, it is unclear how much exposure funds have to both $LUNA and $UST.
The current market situation
UST has entirely lost its peg. It is now down to $0.39, which means that stablecoin holders have lost around two-thirds of their worth. While the stablecoin has recovered at several moments and its decline, it is presently at its lowest point. As stated in the article, there are several side effects of this, and these are only two instances; there are sure to be many more.The price of Luna has dropped to $5.40 at the time of writing, representing an 85% drop in the previous 24 hours. It has now dropped from a high of $116 in April.
Continue reading by joining Cryptonary Pro
$1,548 $1,197/year
Get everything you need to actively manage your portfolio and stay ahead. Ideal for investors seeking regular guidance and access to tools that help make informed decisions.
For your security, all orders are processed on a secured server.
As a Cryptonary Pro subscriber, you also get:
3X Value Guarantee - If cumulative documented upside does not reach 300% during your 12-month membership, you can request a full refund.
24/7 access to experts with 50+ years’ experience
All of our top token picks for 2025
On hand technical analysis on any token of your choice
Weekly livestreams & ask us anything with the team
Daily insights on Macro, Mechanics, and On-chain
Curated list of top upcoming airdrops (free money)
3X Value Guarantee
If cumulative documented upside does not reach 300% during your 12-month membership, you can request a full refund.
Our track record speaks for itself
With over 2.4M tokens and widespread misinformation in crypto, we cut through the noise and consistently find winning assets.
Our track record speaks for itself
With over 2.4M tokens and widespread misinformation in crypto, we cut
through the noise and consistently find winning assets.
Frequently Asked Questions
Can I trust Cryptonary's calls?
Yes. We've consistently identified winners across multiple cycles. Bitcoin under $1,000, Ethereum under $70, Solana under $10, WIF from $0.003 to $5, PopCat from $0.004 to $2, SPX blasting past $1.70, and our latest pick has already 200X'd since June 2025. Everything is timestamped and public record.
Do I need to be an experienced trader or investor to benefit?
No. When we founded Cryptonary in 2017 the market was new to everyone. We intentionally created content that was easy to understand and actionable. That foundational principle is the crux of Cryptonary. Taking complex ideas and opportunities and presenting them in a way a 10 year old could understand.
What makes Cryptonary different from free crypto content on YouTube or Twitter?
Signal vs noise. We filter out 99.9% of garbage projects, provide data backed analysis, and have a proven track record of finding winners. Not to mention since Cryptonary's inception in 2017 we have never taken investment, sponsorship or partnership. Compare this to pretty much everyone else, no track record, and a long list of partnerships that cloud judgements.
Why is there no trial or refund policy?
We share highly sensitive, time-critical research. Once it's out, it can't be "returned." That's why membership is annual only. Crypto success takes time and commitment. If someone is not willing to invest 12 months into their future, there is no place for them at Cryptonary.
Do I get direct access to the Cryptonary team?
Yes. You will have 24/7 to the team that bought you BTC at $1,000, ETH at $70, and SOL at $10. Through our community chats, live Q&As, and member only channels, you can ask questions and interact directly with the team. Our team has over 50 years of combined experience which you can tap into every single day.
How often is content updated?
Daily. We provide real-time updates, weekly reports, emergency alerts, and live Q&As when the markets move fast. In crypto, the market moves fast, in Cryptonary, we move faster.
How does the 3X Value Guarantee work?
We stand behind the value of our research. If the documented upside from our published research during your 12-month membership does not exceed three times (3X) the annual subscription cost, you can request a full refund. Historical context: In every completed market cycle since 2017, cumulative documented upside has exceeded 10X this threshold.
Recommended from Cryptonary
