This alone suggests you don't know what you are talking about.
Compare to reserves backing Dai, or the reserves USDC claims to have. UST/Luna had nothing and they were also highly correlated. It was a stupid stablecoin to hold in, which is why I never did - despite having holdings in Dai & USDC.
"Substantial reserves" meaning that UST / Luna was able to keep the peg for 1.5 years.
That's a reserve for sure. Is it enough for this current storm that the cryptocoin community is having? Obviously not, it all collapsed. But it was substantial enough to perpetuate its own myth for over a year.
That's the thing. You have to admit that these things can last months, or years even if you want to be honest about discussing the nature of these cryptocoins.
This alone suggests you don't know what you are talking about.
Compare to reserves backing Dai, or the reserves USDC claims to have. UST/Luna had nothing and they were also highly correlated. It was a stupid stablecoin to hold in, which is why I never did - despite having holdings in Dai & USDC.