It feels like everything is collapsing because it is.
The top stablecoin claimed rumors about its reserves are being spread in an attempt to generate profits from a failing Tether by "coordinated" funds.
A stablecoin implosion "could have a wide range of financial stability as well as consumer protection impacts," according to a consultation document from the British Treasury.
Mike Novogratz's investment fund was an early supporter of UST/Luna, which imploded last week.
It took less than a week for the third largest stablecoin and its ecosystem to become virtually worthless, wiping out countless traders' savings.
All eyes are on stablecoins after UST's collapse. Amid the pressure, Tether briefly lost its peg, and competitors Frax and DAI wobbled.
The phishing campaign targets people who hold UST, a popular stablecoin built on the Terra blockchain.
Stablecoins are getting favorable attention from politicians as competing projects form alliances and battle for dominance by any means necessary.
Tether said its USDT token was 'backed 1-to-1 by traditional currency' but now adds cash equivalents, receivables from loans, and other assets to its reserves.
Intangible Labs raised $133 million from established investors to create a stable coin with an "algorithmic central bank."