Please read my previous post, 6 days ago I was never sure about LUNA and now I hear that Luna has dropped to $1 from 100$+ I guess I did predict a LUNA crash but did not expect it at this crazy level!
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I’m actually surprised that USDT hasn’t imploded yet. I still think it’s going to happen and have ripple effects across the market but the good news is that USDT is now less dominant that it was few years back and some other more reliable stables (mostly USDC) are more widely used. So hopefully less of a drama when USDT blows up and less people getting hurt.
I’m writing this in the middle of a multi day depeg in UST and 90%+ Luna price crash. It’s painful to watch but not surprising due to the under collaterized nature and having some of the reserve backed by other unstable assets. I’m not sure if both Luna/UST will survive this actually.
So at the moment I mostly trust USDC. Even though it’s centralised, there’s a good level of trasparency on the backing.
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Hi guys, Luna stablecoins system was also a payment system for Real economy, particularly used in South Korea and Mongolia. Now that Luna imploded, which is the best payment system that links the Cryptoworld to the Real World Economy? I am looking forward to hear from you guys!!!
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Decentralised finance absolutely needs decentralised stable-coins. But the centralised ones are proving to be more resilient and stable.
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i don’t know what is my favorite. however BUSD and USDC seems more stable for me when swapping in Avalanche or fantom ecosystem
however I haven’t used DAI
USDT is the most use, specially in exchanges however their lack of transparency in the 28.47% backed up by commercial paper and certificate deposits.
about Terra luna stable coin: it turned out that a pegged UST to Luna was a death spiral if it is under-collateralized.
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I trust in Dai, nothing more.
Maybe there should be an update regarding the terra luna disaster on the course
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Ever since the fall of Terra, USDT’s market cap has fallen from from $83 billion dollars to $69 billion. At the same time, USDC’s market cap has increased my an extra $2.5 billion. It’s very clear that investors want stables that are fully backed by cash/treasuries. If stable coins are backed by Eth, Btc, or anything that isn’t stable, then this presents a massive point of failure. It’s possible Tether could be heading in that direction, as well as USDD (Tron’s stable coin). From here on out, the crypto space badly needs to embrace stable coins that are only backed by stable assets. This will bring much lower yields, but investors will be able to avoid catastrophic cave ins like in the case of Terra.
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I would have to go with USDC in regards to the more secure stablecoin. Tether has really never been in my opinion a very transparent stablecoin. Terra and Luna have all but reached the end. Binance is weathering this Bear market well, but USDC would be my choice. Also, I don’t think being backed by ETH would improve or decrease security, ETH has had it’s own past issues resulting in a hard fork.
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Just looking at Tethers Website. There’s a section now about being a full transparent company with regular reports etc… Here’s the link
Have I missed something? Or does independent report mean it’s done in house and it’s not 3rd party?
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I have so far never used a stable coin. One problem I see is the exchange rate to other currencies, in my case €. This is also the reason why I personally haven´t used them until now. But I definitely think they have a use case in international transactions between currencies.
Tethers actions definetely add fuel to the fire of criticts of crypto. If claims are made which aren´t backed by anything then this can be dangerous for crypto as a whole.
A stable coin not backed by Fiat money but crypto adds risk of devaluing in the case of a market crash.
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Well after all these crashes and liquidations, which started with terra luna deppeging the one dollar ratio…I would love, when there is a centralized, controlled (form the government) stablecoin. Yes centralisation is contraversial in crypto. But i think stablecoins should be controlled because the government/banks is also the ones who prints the money in circulation. It makes more safer and therefore more people will use crypto.
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I think usdt creates a definite risk to crypto. tether has been depegged in the past and as you see with ust collapse it can cause a lot of damage.usdc is my favorite as of today but i really dont like stable coins.yes dai is more stable with usdc backing but not stable enough.I think rhe best idea i have heard is a stable coin backed by gold.
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if USDT is not properly backed and audited, that cuases unnecessary risk, which is why most flee to USDC. as for DAI, it depends on what you need: regulatory compliance or not.
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If a stable coin is tied to a FIAT currencies doesn’t it defeat its purpose? I like the idea of them being pegged to something like ETH in which so many applications are built apon.
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I agree with Serell about stable coins being tied to a FIAT currency defeating the purpose of decentralization. Having stable coins pegged to the dollar or other equal value assets does not give a hedge to the dollar in the event that the dollar collapses. I would feel more confident and diversified if a coin was pegged to ETH because of the nature of the ETH network giving value to the whole network and not depreciating over time like the dollar has.
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need to update this video, especially after Luna imploded
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Josh’s bad premonitions about Luna were true in the end, very good analysis on your part, in addition to other users who have also commented on it in their contributions.
Tether right now seems to be more backed up than when the video was recorded, they have even added a “transparency” section on their website. And I they are being closely watched by the SEC, so I don’t think it’s a problem their reserves.
Looking at the problem Coinbase is carrying, I don’t think it’s very safe to currently have more than 50% collateralized your coin with USDC, as DAI has. Although if instead of USDC, the collateral was ETH, it would also be risky due to the abrupt price changes that have occurred in recent months.
In short, I would bet on TrueUSD and Tether to keep my liquidity.
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i feel like the entire series needed a overhaul every now and then. to keep topics relevant.
Tether’s reserves are a joke. No transparency, just like in the traditional fractional reserve banking system. My favourite is DAI as , it is one of the most trustworthy , one of the oldest, decentralised.
It seems that the stablecoin ecosystem has changed since the publication of this video. Few observations and thoughts on what has happened:
- Terra Luna stablecoin collapsed, good catch @josh
- USDT reserves have been audited and published. It seems that the stablecoin is well backed, with short-term assets (mainly short-term loans to corporates and US treasury bonds) larger than liabilities. 1 of the audit report was published by BDO (top 5 global audit firm), which seems reliable
- DAI is mainly backed bu USDC (CoinBase stablecoin), which has not been audited recently - Although to me CoinBase is one of the leading crypto company which is close to regulators, this lack of transparency creates a risk. It feels now that USDC is riskier than USDT due to lack of transparency
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