What's the difference between terrausd and tether?

TerraUSD and Tether are both stablecoins but they're built differently. Market conditions (whether premeditated or random) caused TerraUSD's stablecoin system to break, shaking confidence in stablecoins. Tether is seeing extreme selling pressure, but holders are still able to redeem for physical dollars if they choose.

How important is tether to a stablecoin holder?

“Tether’s rise suggests peg stability is far more important for most stablecoin holders than issuer transparency,” Conor Ryder, an analyst at digital asset research firm Kaiko, noted in a report.

Should you burn terrausd coins and exchange them for Luna tokens?

Ideally, users would have burned TerraUSD coins and exchanged them for Luna tokens to remediate the sudden supply and-demand imbalance. However, Luna was also falling hard at the time, demotivating users to exploit the arbitrage opportunity.