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There is needed for categorization of stablecoins, where, to be clear, there are…


There is needed for categorization of stablecoins, where, to be clear, there are generally three varieties of stablecoin:

1. Centralized fiat collateralized (USDT, USDC),

2. Crypto collateralized (DAI, sUSD) and

3. Algorithmic stablecoins (UST, IRON, USDD).

Amongst the asset-backed stablecoins, Tether USDT is the biggest, followed by USDC. However, the algorithmic stablecoins, those are the ones that are blowing up, it’s ‘stable-in-name-only’.

The risk that has manifested itself is exactly why the policy conversation about these types of issues matters.

‘Algorithmic Stablecoins’ should be appropriately named ‘Algorithmic UNSTABLECOINS’.

#crypto #cryptocurrency #bitcoin #ethereum #eth #altcoins #stablecoins #unstablecoins #trading #investing #blockchain #DeFi #finance #digitalcurrency #digital #innovation #nft #nfts #ust #usdt #terra #luna #DoKwon



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