How Truly Stable are Stable coins?
How Truly Stable are Stable coins?
With all the messy situations and controversies we have had regarding stable coins I think many of us have at least some distrust towards stable coins even though they are essentially a very huge part of Crypto.
Even if we we like it or not Stable coins like USDT are here to stay and essentially affect the entire Crypto ecosystem due to its prevalence in and outside of exchanges.
We have also already seen the impact some so called stable coins can have when they untether and just crash and burn taking out anything anything associated with them with the whole Terra situation and Luna situation.
Tether is also not just one of the most popular Stablecoins it is also one of the most popular Cryptocurrencies as a whole which means the impact of it failing will be bigger than anything we have seen before especially when it is already surrounded by controversies.
I wouldn’t say that they’re guarenteed to stay in their current interation. Once CBDCs become mainstream, I think regulators will push for any non governmental stables to be banned, or “integrated”.
In my opinion, a stable coin is only stable when you are able to convert the token to FIAT at any time and any day.
They’re becoming more difficult to trust with depegging becoming more common, the underlying assets being backed perhaps by Chinese property developers, audits that are few and far between, etc.
If I could go with any stablecoin, I’m just holding True USD.
