Tether (USDT) feels like the next Terra (LUNA) and I am terrified because of this

I still remember when LUNA collapsed. I watched Bitcoin get dragged into the abyss, not because of its own flaws but because one so-called stable asset imploded and set off a chain reaction of fear and forced liquidations. One algorithmic coin lost its peg and suddenly entire ecosystems crumbled, billions evaporated and Bitcoin bled like it had never bled before.

Now I look at Tether slipping to sixty percent dominance and I feel the same dread building again. It is not just a number. It is the beginning of the same story. I imagine the moment the confidence breaks. It will not matter if the reserves are there or not. What matters is that once enough people doubt, they will all run for the exit at once. The first redemptions will trigger panic and then the exchanges will face something worse than volatility, they will face a bank run.

Once liquidity dries up on Binance and other popular crypto platforms, spreads widen on every pair, DeFi pools get drained until they are nothing but shells. People will scramble to move into USDC or whatever else looks safest, but it will be too late, the panic will already have poisoned the entire market. Bitcoin will not be spared. Just like during the Terra disaster, it will be crushed under the weight of cascading liquidations, only this time the collapse will hit even harder because the entire system has grown bigger and more fragile (don't get me started on how many USDT – Y crypto pairs are out there).

I feel like I am staring into the same abyss we saw with Terra, only deeper. The warning signs are here, but I know when it breaks there will be no time to react. The bank run will spread across exchanges, wallets and protocols faster than anyone can process. And when the dust settles, it will not just be another bear market, it will be another graveyard.

TLDR: I watched Terra Luna collapse drag Bitcoin to its knees. Seeing Tether lose dominance feels like watching that nightmare set itself up again. When the trust goes, it will trigger bank runs across exchanges and the whole market will fall with it.