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"So you put in a dollar, you get back a dollar." Until you don't. There are dozens of examples of failed stable coins, to the point that they are now a meme i
by thrown-0825-1 1y ago
"So you put in a dollar, you get back a dollar."
Until you don't.
There are dozens of examples of failed stable coins, to the point that they are now a meme in the crypto community.
- giancarlostoro 1y agoSure, but this is a very well established firm, not some off-shoot crypto startup.
- thrown-0825-1 1y agolmao, never heard that before.
- TZubiri 1y agoIt's worth noting that there's nothing different between a stablecoin with a 1-to-1 ratio, and any entity that holds deposits. Like a bank Paypal, Stripe. Whether you call them Dollars or BrandDollars, if it has a 1to1 ratio, it's actually a dollar. People are confused because they usually can't distinguish between net emission and gross emission, if you hold a deposit or a loan, you have increased the gross amount of dollars in the economy, but of course you have created an equivalent liability. There's no semantic or technical difference between loaning a dollar, holding a dollar in deposit, or issuing a dollar-equivalent token.
- thrown-0825-1 1y ago[dead]