The main harm of existing “Stablecoins” this is a pyramid scheme

[sunsilk]

Yes, it's possible to make a stable coin without even real back up of fiat.

But those type of stable coins are likely to get exposed when someone audits and look at its history. Well, those that are backed for real, they're audited and said that they've been registered and verified that they've got an actual backing fiat.

This is what's scary in stable coins lately, even they're reputable, it cannot be removed in the minds of everyone on what happened to UST.

[24Kt]

Yes, it's possible to make a stable coin without even real back up of fiat.

But those type of stable coins are likely to get exposed when someone audits and look at its history. Well, those that are backed for real, they're audited and said that they've been registered and verified that they've got an actual backing fiat.

This is what's scary in stable coins lately, even they're reputable, it cannot be removed in the minds of everyone on what happened to UST.

UST is algo-based and no backing of actual fiat. So for me, this is more risky as compared to stablecoin pegged at fiat. As UST crumbles, it goes to show that algo-based stablecoin is hard to trust your hard-earned savings. But it may be the same with stablecoin backed by real fiat, because if it is centralized, the team has the power to manipulate their code. But the crash may not be the same as algo-based. Bottomline, it is hard to trust stablecoin whether it is algo-based or fiat-based, because the future of the coin depends on the dev team themselves.

[crzy]

LUNA or UST is a bad example of this, this so called stablecoin collapse already at the cost of many investors and the developer of this project looks like he is going to totally abandon the project and try to create a new one with the same purpose. Though you can’t print this stablecoin but creating it online are more easy, so if you don’t want to become a victim of this scheme better not to invest at all.

[sunsilk]

Yes, it's possible to make a stable coin without even real back up of fiat.

But those type of stable coins are likely to get exposed when someone audits and look at its history. Well, those that are backed for real, they're audited and said that they've been registered and verified that they've got an actual backing fiat.

This is what's scary in stable coins lately, even they're reputable, it cannot be removed in the minds of everyone on what happened to UST.

UST is algo-based and no backing of actual fiat. So for me, this is more risky as compared to stablecoin pegged at fiat. As UST crumbles, it goes to show that algo-based stablecoin is hard to trust your hard-earned savings. But it may be the same with stablecoin backed by real fiat, because if it is centralized, the team has the power to manipulate their code. But the crash may not be the same as algo-based. Bottomline, it is hard to trust stablecoin whether it is algo-based or fiat-based, because the future of the coin depends on the dev team themselves.

CMIIW.

AFAIK, they've tried to backed it up with their weekly purchase of bitcoin but it didn't do good. Yes, algo-based or not backed up with real fiat is a danger to those investors and holders that are looking forward to save their wealth through a stable coin.

This debacle that came to UST/LUNA won't be passed by everyone who's been long on this market. It's only built by trust and then they've lost it in a span of weeks.

[VictorProsh]

Yes, it's possible to make a stable coin without even real back up of fiat.

But those type of stable coins are likely to get exposed when someone audits and look at its history. Well, those that are backed for real, they're audited and said that they've been registered and verified that they've got an actual backing fiat.

This is what's scary in stable coins lately, even they're reputable, it cannot be removed in the minds of everyone on what happened to UST.

The main value of a stable coin is its liquidity, this quality should be possessed by the cryptocurrency itself. All artificial stablecoins based on Fiat or tangible assets do not use the main purpose of a decentralized cryptocurrency.