The StableCoin Craze

[ngm22585]

Stablecoins are everywhere now, it feels like.

It's not surprising considering how bad Tether was in terms of transparency, etc...but is the sector becoming oversaturated?  Is this a logical way to provide liquidity, and are all of these necessary?

https://cointelegraph.com/news/crypto-payment-platform-bitpay-introduces-settlement-in-stablecoins

It seems like exchanges want to create their own stablecoins, too, etc...

I was wondering about the community's overall thoughts on saturation, etc.

[1714806522]

1714806522

[Vektrum]

Yesterday stable coins surprised me a lot. USDT fell in price to 0.85 dollars, and TUSD, on the contrary, was trading in the range of 1.24 to 1.10 dollars. This is despite the fact that it was believed that they could be a maximum of a few hundredths of a dollar higher or falling in price compared to the dollar.
Although Bitcoin, it also increased by three hours in price to $ 7,500 and then fell to $ 6,630.
Whether the exchanges strive to create their own stable coins, I have not seen such information.

[pooya87]

It's not surprising considering how bad Tether was in terms of transparency, etc...

i don't think it has anything to do with that.
when you think about it "stable coin" is another subcategory of altcoins so it also inherits all the issues that the altcoins have. in short everything is open source and easy to fork and for years people have been creating their own altcoins by copying work of others and 99% of them have been doing it to make money. this subcategory is not any different either, they are still doing it to make money and gain some power in this market.

[ngm22585]

It's not surprising considering how bad Tether was in terms of transparency, etc...

i don't think it has anything to do with that.
when you think about it "stable coin" is another subcategory of altcoins so it also inherits all the issues that the altcoins have. in short everything is open source and easy to fork and for years people have been creating their own altcoins by copying work of others and 99% of them have been doing it to make money. this subcategory is not any different either, they are still doing it to make money and gain some power in this market.

You think it has nothing to do with the insolvency rumors?  Interesting.

[bartolo]

The concept of stablecoins doesn't make any sense. If people want to trade with USD, there are plenty of exchanges where they can do it and even withdraw fiat money if they wish. Stablecoins are based on trusting that a third party can back the value of those coins, which is a problematic point, and we have seen how these coins cannot withstand a sell off.

[talkbitcoin]

it is impossible to make an stable coin!
we have a lot of coins that call themselves stable coin but they are not really stable. they have fluctuations and some of them big ones. and the worst problem with them is their centralization.
the current craze is mostly because people don't want to be caught up in KYC so they choose these tokens instead but they are introducing themselves into a lot of risks.

[Steinway-Bobb]

As Far As I 'm concerned , we can not make a stable coin, as there is a fluctuation in the bitcoin market, no one can control it.

[hydranetwork]

Stablecoins are made for the puropose of connecting altcoin-only exchanges to fiat money, but there are problems in creating a working one.