There are a bunch of people kicking themselves for not buying USDC for a massive payday, but many did exactly that with Terra-USD…

There was clear uncertainty in the market when SVB collapsed. USDC depegged all the way down to about $0.87 at it lowest I believe. It then recovered to around $0.93-$0.96 and stood there for a good while. That was actually really interesting because the price drop represented fairly well the 7-8% loss of funds stuck in SVB.

But when it was depegged, there were for sure a bunch of people saying it was a sure-fire profit if you bought USDC. Some said quite the opposite. the thing is most of us on the sub were around when Terra collapsed and know very well the ridiculous bets some people made. Some bought on leverage when Terra fell to $0.70. Some took the bet all the way at $0.09-0.10 for a big payout. But it was a terrible decision for those people.

Yes, technically, you have a 50% chance of winning. Fundamentally, USDC still had 90% of its reserves intact. But fundamental and technicals don’t always matter in a market of irrational traders. It only takes one trader to panic, another trader to see that trade lose their composure and sell, and yet another trader who wants to doubts themself as to why those two sold…and so on. As traders says, markets can remain irrational longer than you can remain solvent.

What traders mean when they say they should have bought is that they wish they could see the future. FOMO is everything it is cracked up to be.