The trouble is, while there are clear stablecoin scams like Tether, Terra and associated algo stablecoins it makes it harder for even genuine stablecoins to flourish. They are all interconnected in an unhealthy ecosystem of scams and pump/dump artists.. when you throw in leverage and collateral on top it starts to explain why they all come crashing down together.
When Tether blows up, there might be some interesting bits of flotsam and jetsam in the wreckage.. until then best to stay the fuck away.
@bdw Good question. I'm inclined to think yes, but not totally confident tbh.
Rest assured firstly that there are very reliable, well backed and transparent coins out there (USDC, GUSD, BUSD, Paxo etc) and secondly that the regulatory groundwork is currently being laid to ensure that if / when mass adoption arrives it arrives safely.
@TheBrit, if Tether survives the catastrophic deleveraging and resultant insolvencies of some of the biggest institutions in crypto, would that be enough to convince you of Tether's backing? UST collapsed, Celcius is probably insolvent, 3AC is definately insolvent and spreading contagion... This is basically it, biggest stress test in cryptos history as we speak.
Ironically, the biggest failures / collapses over the last 3 months that have ruined the price of crypto assets and reputation of the space as a credible asset class have all been a result of mismanagement by centralised actors.
Terra was basically run by one man and was propped up by large market makers from traditional markets (Jump Capital etc), Celcius and 3AC collapsed due to opaque loans and OTC transactions combined with reckless leverage and risk management.
All the decentralised platforms have been running smoothly, minimal bad debt, liquidations occurring as needed to avoid insolvency. The actual 'DeFi' in the system has done very well, better than I expected, while centralised parties are blowing up all over the place.
They could easily dispel this concern. It would be free, easy and trivial to do so. They choose not to.