There is no difference. There are a lot of currencies. There are two reasons you might want to hold them: - you believe they might increase in value or at leas

There is no difference. There are a lot of currencies. There are two reasons you might want to hold them: - you believe they might increase in value or at least hold their value relative to other currencies. - you need them for something (e.g. because you need to spend some) and you trust they won't decrease in value short term. With any coin, as soon as you break that trust it becomes a problem. This coin is no different than Argentina pegging their currency to the dollar back in the day. Didn't work out either because their economy was still bad and they had to walk back their promises regarding that value. As soon as people stopped believing their coin was worth 1 dollar, it devalued by a lot. There are plenty of examples of 'real' currencies running into issues with their valuation. The Venezuelan currency was at some point cheaper than toilet paper by weight, for example. Happens all the time. Real currencies can be as unstable or even less stable than the shittiest crypto coin. Ultimately the problem with a lot of these stable coins is a lack of regulation and mandatory reserves combined with dodgy market making magic bots that may or may not work as advertised. This one clearly did not keep up and now the reserves are gone and the trust as well.