Post
Topic
Board Bitcoin Discussion
Re: Proof of reserves? Insurance fund? Best I can do is a random number generator!
by
SquirrelJulietGarden
on 11/10/2023, 13:10:45 UTC
One fund, multiple assets:


The screenshot is interesting so can I use it to discuss about stable coins too?

Stable coins must be backed by fiat currencies like the US. dollar. If they are backed by volatile assets like gold, Bitcoin, Ethereum, altcoins, they might lose their pegs anytime. Attacks from whales and market markers can kill stable coin pegs very quickly. A massive crash of Terra and its algorithmic stable coin is example of bad managed treasury can be easily attacked and broken down.