Quote from: eaLiTy on Today at 07:01:59 PM

Quote from: Kakmakr on May 11, 2022, 09:23:55 AM

My issue with Stablecoins are the validity of the statement that $1 = 1 Stablecoin Roll Eyes

It is almost impossible to trace the dollars that are supposedly backing the value of the tokens. Roll Eyes

I am curious to see some of these so called pegged stable currencies publish their audit report and for the most part USDT finally published a report recently which claims 83.74% of its reserves in cash, cash equivalents, short-term deposits and commercial paper, 4.61% in corporate bonds, 5.27% in secured loans to unaffiliated entities, and 6.38% in other investments including digital tokens but the fact remains that it is not clear how much dollar they pegged and my belief is that majority are commercial papers and cash equivalent.

In the coming years i am expecting the validity of centralized stable currencies will be questioned and it might change the complexion of the overall cryptocurrency market.

If we have to remember, way back in year 2019, USDT team admitted they were not fully backed by assets. So right now, are they saying the truth about their backing here or they are covering some of these with untraceable assets? Because they can say they have about 84% reserve cash in USD, but the remaining, who can prove about those papers that they really do exist. So when it comes to stablecoin, you also need to prepare that they may really not saying the truth here. And when it comes to algo-based, they are more prone to failure and hence, maybe, UST is failing today. They have no assets to peg to with their target $1. Algo? Their devs can manipulate this in my opinion..