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That's not a great analogy, you can't redeem currency at a bank. My understanding is that stable coins are stable because they claim to be backed 1:1 by some o
by dnadler 5y ago
That's not a great analogy, you can't redeem currency at a bank.
My understanding is that stable coins are stable because they claim to be backed 1:1 by some other currency. If they are not actually doing that, then thats a fraudulent statement, isnt it?
- CryptoPunk 5y agoNot all stablecoins claim redeemability for USD. Some claim each unit's redeemability for an amount of some digital asset that is worth 1 USD, with the amount redeemed fluctuating in proportion to the value of the digital asset, to maintain the stable value.
- Nasrudith 5y agoAnd all of the incentives are set up for the maintainer to take the money and run. Excessive ammounts of idle money is an attractive nuisance.