You can say that FUD will be a strong instrument for other newer stable coins creeping in but their moves are really alarming for investors and the whole community of crypto itself. But I think even if they fail or everyone left their tokens an alternative will still rise since man investors will need to secure their position once and for all when the market is in chaos.
Best case scenario no other stable coins will replace USDT if anything bad happens. It should act as a wake up call for people that it only brings problems. In the ideal situation people are just able to trade fiat/crypto without the need for any added complication from stable-coins.
I can fully understand the ongoing infatuation with stablecoins, from a hedging point of view. But these instruments will always be backstops. Temporary solutions until the actual asset itself becomes mature to the level desired (maybe this temporary in our relative view means decades, maybe our lifetime).
They will fail, simply because they are backed by or pegged to currencies whose years are already numbered. Other stablecoins may last longer, pegged to baskets of currencies, pegged to precious metals, whatever. But the fact is, their shelf lives are already limited by the very currency they depend on - which are all part of the old world that must give way and collapse under their own designs.
