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The short version is that you have identified why the coins keep failing. None of the coins are directly backed by US$. Some are backed by an organizing who pr
by codefreeordie 4y ago
The short version is that you have identified why the coins keep failing.
None of the coins are directly backed by US$. Some are backed by an organizing who promises to exchange them 1:1 for US$ on demand -- but the coins are only backed by the sponsor's ability and willingness to do so.
Others, like Terra, are not backed by US$ even indirectly and ... well...
- arthurcolle 4y agoUSDC is an example of a 1-1 backed stablecoin. Circle is just another private company but it is well funded and I think only fully collateralized stablecoins can exist. Algorithmic stablecoins are pure hocus-pocus.