Be careful with new projects that introduce new Stable coins

[Outhue]

Be sure to understand how a Stable coin is designed before storing your assets using them, most stable coins have failed since last bear market season, from USDN to UST and USN, there are many more that I don't mentioned.

Some new projects will come as whatever they like, either DeFi or Smart contract and they will introduce new Stable coin, be careful, in fact I don't see any reason why you should keep your dollars using a new Stable coin when we have USDT, USDC, DAI and BUSD..

Centralised or Decentralised you can just make a pick from USDC , USDT, DAI or BUSD

[un_rank]

in fact I don't see any reason why you should keep your dollars using a new Stable coin when we have USDT, USDC, DAI and BUSD..

I do not see any reason to keep your dollars in any stable coin when we have Bitcoin.

Centralised or Decentralised you can just make a pick from USDC , USDT, DAI or BUSD

Avoid any centralized project, if you value your asset, security and privacy.

- Jay -

[NeuroticFish]

Old or new stable coins, no matter; people should be aware that in most (or all?) cases the value (price) listed for them is artificial and they have to trust the issuer that the value will hold.
While stable coins do have their use in the ecosystem (fast transfer of value), their use as safe heaven against bitcoin's bear market is overly risky (just think of what has happened with Terra).
It's always wise to keep money in stable coins as little time as possible.

[Charles-Tim]

Be sure to understand how a Stable coin is designed before storing your assets using them, most stable coins have failed since last bear market season, from USDN to UST and USN, there are many more that I don't mentioned.

There were many that failed even before the last bear market season, some has been failing many years ago and they are mostly algorithmic stable coin if not all are algorithmic stable coins. People were warned of stable coins like UST the were algorithmic that were later created not quite long. Many failed again as usual.

Centralised or Decentralised you can just make a pick from USDC , USDT, DAI or BUSD

People that are using centralized exchanges to trade can use USDT or USDC because the exchanges are centralized themselves, they can use a centralized coins with it while trading.

BUSD is the worst of all the centralization stable coin as Binance is trying to make it dominate. You can see their plan as they are auto converting USDC, USDP and TUSD to BUSD on their exchange, said to increase liquidity. During the last panic that made Binance users to withdraw their coins to noncustodial wallet, USDC withdrawal was disabled, I do not know if it was later enabled at the time.

DAI is better if you want a decentralized stable coin, all others can be freezed on noncustodial wallet, the reason not to stored them on noncustodial wallet.

I do not see any reason to keep your dollars in any stable coin when we have Bitcoin.

Just that some people are traders, example are swing traders that convert bitcoin to stable coin and convert it back to bitcoin. But for an appreciative asset, bitcoin should be gone for.

[Lucius]

I do not see any reason to keep your dollars in any stable coin when we have Bitcoin.

From the perspective of someone who is an active crypto trader, stablecoins definitely make sense for all the reasons we already know, but I never liked the whole story about the so-called stablecoins. It's no secret that most of such s-coins have full custodial status, which means that they can be frozen by the issuer at any time, regardless of where they are stored - so they are highly risky.

In addition, even the most famous ones had problems with the fact that it was discovered that they were not backed in the way we thought, which means that someone is printing digital tokens that are not actually worth anything while at the same time claiming the complete opposite. Therefore, it is beyond all reason to believe in such a system that can turn against everyone at any time, so it is logical to conclude that stablecoins are a far worse option even than fiat currencies.

[AakZaki]

USDC, USDT, DAI and BUSD are enough for me, and will not store in any other stablecoin. But even so, it is not recommended to store all assets in crypto stablecoins which still have the risk of being lost, such as the incident at Terra LUNA which made the stable coin brand, namely UST, also collapse. There will still be risks, we need to be vigilant and have a backup plan when things don't go our way.
Several new projects that will make stablecoins need to be watched out for, because they are still very risky. Make sure to do as much detailed research as possible to find out behind the project you are working on.

[BIT-BENDER]

And why do you think the coins you mentioned are safe, are you ready for the attack if by chance those stablecoin crashes. There is nothing completely safe in crypto-currency world.

I would agree the more popular stablecoins are USDT but popular is not safe. UST was becoming popular even though it was new but still fell off. I would always choose anything that is decentralized.

[Beparanf]

Be sure to understand how a Stable coin is designed before storing your assets using them, most stable coins have failed since last bear market season, from USDN to UST and USN, there are many more that I don't mentioned.

This 3 well known failure stablecoin is due to there unique way to stabilize the price. These stablecoins use a protocol that involves volatile asset as basis to peg the price to 1USD which is obviously turns to failure after unable handling too much sell off on the token.

Also Justin Sun and Do Kwon idea is pure ponzinomics which offers there stablecoin in bargain price with a huge APY by just staking. The rest of the stablecoin that use real USD to back there stablecoin will likely gonna survive.

[ryzaadit]

But don't forget the stable-coin you're mentioning is always on alert as well.

For example for "USDT", the rumor is not actually backup 100% by the asset. A potential backup asset is only 60%-70%, they even got check by SEC for the reserve asset also USDT can be frozen.

So, IMO new or old everyone should aware.

[South Park]

Be sure to understand how a Stable coin is designed before storing your assets using them, most stable coins have failed since last bear market season, from USDN to UST and USN, there are many more that I don't mentioned.

Some new projects will come as whatever they like, either DeFi or Smart contract and they will introduce new Stable coin, be careful, in fact I don't see any reason why you should keep your dollars using a new Stable coin when we have USDT, USDC, DAI and BUSD..

Centralised or Decentralised you can just make a pick from USDC , USDT, DAI or BUSD

This advice should be applied to all stable coins and not only towards the new ones, even coins like USDT has had many issues proving that they are in fact following their policies when it comes to the amount of fiat they have in store compared to the units of USDT they have emitted, and when the most popular stable coin in the market cannot do something as simple as this then it is to be expected that the rest of the stable coins could be presenting the same kind of issues, so if someone needs to use a stable coin it is acceptable to use one that looks solid but they should never keep their funds there for long.

[Jackl87]

Be sure to understand how a Stable coin is designed before storing your assets using them, most stable coins have failed since last bear market season, from USDN to UST and USN, there are many more that I don't mentioned.
Some new projects will come as whatever they like, either DeFi or Smart contract and they will introduce new Stable coin, be careful, in fact I don't see any reason why you should keep your dollars using a new Stable coin when we have USDT, USDC, DAI and BUSD..
Centralised or Decentralised you can just make a pick from USDC , USDT, DAI or BUSD

I definitely agree with your statement and i can only give the same warning. To issue a stablecoin that really is stable and also reliable during a heavy bear market like the one that we are in right now requires a huge amount of money. In the end every stablecoin that is minted and issued by a company needs to be backed 1:1 with a real $ or € that is owned by that company otherwise that stablecoin will not be very stable once some big hickups are happening in the crypto market.
I also use USDT, USDC and BUSD as the stablecoins of my choice, even though i don't really like the fact that they are all centralized, but it is what it is.

[CryptopreneurBrainboss]

Centralised or Decentralised you can just make a pick from USDC , USDT, DAI or BUSD

I don't think it's advisable suggesting centralization stablecoin projects to newbies reading this. Among all the stable coins you mention, DAI should be the only go to stablecoin for storing of your profits while the rest can be used for trading since they have more available liquidly as they're been adopted more on exchanges. Before entrusting your funds to ang project for safe keeping do understand how that stable coins works.

Many investors didn't understand how UST worked (algorithmic stablecoin) but just patronized it because it was popular and a coin from famous Terra Luna camp. Also do note that just because a project claims to be decentralized doesn't guarantee them been a good project and safe from collapsing. We have lots of Defi projects getting hacked daily and any of the so called Defi stablecoin could still fall victim and unlikely to recover, be careful out there.

[vv181]

Let alone a new stablecoin project, most of the current leading stablecoins are even getting scrutiny. The main concern should be also addressed to the current leading market, those 4 stablecoins on the OP are also inherently having a risk due to how stablecoin works. The centralized one might have regulatory problems or simply take the example of USDT about its reserve issues. So do the decentralized one, it does not guarantee the ecosystem can't be hacked or have some issues.

[dothebeats]

At this point I don't think people will miss out on projects that will introduce stablecoins. Pretty sure we've all had our fill with the recent FTX issue, and we will avoid anything similar like the plague. Heck, we're still having doubts with USDT and BNB up to now even though these two are already established and belongs to companies that have already proven their worth in the scene (except USDT of course).

There will be a lot of people that will still be greedy for profits, and those people will surely buy in to these projects that offer to bring out a new stablecoin, and I guess it's just right of them to invest on those because for sure, after a lot of warnings, if they don't read the signs, they deserve to get burned.

[Tigerheart3026]

btw i never heard before about of usdn, ust, and usn
can i find on coinmarketcap? i see these aren’t stable in price.
no stable coins are safe also your mentioned usdt, busd, dai, and usdc although we have using them in our regular trading,
i don’t keep hold any stable coin for long time.

[samcrypto]

But don't forget the stable-coin you're mentioning is always on alert as well.

For example for "USDT", the rumor is not actually backup 100% by the asset. A potential backup asset is only 60%-70%, they even got check by SEC for the reserve asset also USDT can be frozen.

So, IMO new or old everyone should aware.

There’s a lot of trust issues now with the stablecoin and even if they release their back-up plan and percentage I think its not enough to trust again, so be careful dealing with them especially with the new project claiming to be good as they offer a stablecoin. SEC is doing their job now to add the fud in the market, it seems they timing the market before they make action and right now is their perfect timing to do their job. Not all new projects are ok to deal with, stay cautious.

[serjent05]

Be sure to understand how a Stable coin is designed before storing your assets using them, most stable coins have failed since last bear market season, from USDN to UST and USN, there are many more that I don't mentioned.

Some new projects will come as whatever they like, either DeFi or Smart contract and they will introduce new Stable coin, be careful, in fact I don't see any reason why you should keep your dollars using a new Stable coin when we have USDT, USDC, DAI and BUSD..

Centralised or Decentralised you can just make a pick from USDC , USDT, DAI or BUSD

Yeah, we should be vigilant about projects that introduce stablecoin.  If it is not backed up by reserve 1:1, it will only mean one thing.  It is fraud when declaring 1 token :1 USD when your reserve fund does not support your claim.  Let us not be persuaded by hype, instead let us base our decision on facts that we collect while we are investigating or researching the project.

[TastyChillySauce00]

Be sure to understand how a Stable coin is designed before storing your assets using them, most stable coins have failed since last bear market season, from USDN to UST and USN, there are many more that I don't mentioned.

Those were algorithmic stable token that used their token as a thing to backed their stable token. it can be said that if the value from algorithmic stable token being stabilized through burning and issuing the new token. This kind of stable token didn't backed by enough reserved funds. that's why those algorithmic stable token was a very risky thing.

Some new projects will come as whatever they like, either DeFi or Smart contract and they will introduce new Stable coin, be careful, in fact I don't see any reason why you should keep your dollars using a new Stable coin when we have USDT, USDC, DAI and BUSD..

Agreed but stuped users will always become ignorance since they did believe in the platform aka new dev. Once the new stable token will be collapse and they will make bunch of complaints like crazy people while they didn't even try to realize if they were stupid enough by using the new stable token that has not backed by USD.

Centralised or Decentralised you can just make a pick from USDC , USDT, DAI or BUSD

So far by using those stable tokens with real reserved funds and i never encounter any problem unlike those who have been using algorithmic stable token which was a scam token.

[Bazzu]

yes, definitely have to be careful, with the new stable coin. but personally I prefer to invest in bitcoin because investing in bitcoin will be safer. compared to a new stable coin. but we can also invest in new stable coins, as long as we have to be able to see whether the coin has good potential or not. yes, but it's up to each one because in reality there are always a lot of people who invest in new stable coins and there are always a lot of enthusiasts.

[Hispo]

I had kept an eye on the USDN (Neutrino USD) since a while ago because I indeed expected it to lose its peg after the collapse of Terra-Luna, months passed and nothing happen. After reading OP I went to check the situation with that stablecoin and indeed it has lost its value for over 50%. People do not learn when comes to logarithmic stablecoins.

I agree with you, of course, for now on I'll check USDD often to see what happens to it.
Personally, my preferred Stablecoin is DAI.