The stablecoins are one of the most hotly discussed digital assets in crypto. For some people, they are used to hedge the intolerable risks in crypto while others see them as the black swans in an infant ecosystem.
Putting the exact opposite points of view aside, these coins have an important place in the crypto ecosystem. From institutional investors to retail investors, we feel the need for a nearly stable asset that will always have a position in our portfolio.
At that point, the Hive blockchain has HBD which is a Hive-backed stablecoin (we use to get 20% APR in Hive Savings or use it cross-chain via PolyCUB for decent stablecoin return) and there are 4 different types of stablecoins as of 2022.
With the collapse of UST, the. stablecoins started experiencing depeg situations more frequently than before. Are we done with this devastating FUD wave?
TerraClassic team realized the risks that they could not deal with in the Luna case and they did not choose to have a stablecoin in their LUNA 2.0 project.
Due to this move, they have a little hope that nay help Terra 2.0 projects recover and start operating as before. However, the scope of the FUD was devastating. Thousands of people still suffer from this catastrophic case.
At least, we are done with it ✅
Tether & Ripple are the black swans of crypto for me. However, any speculation on Tether may bring terrible problems to the crypto ecosystem even worse than the UST occasion.
Tether "lost" its peg for just a $0.05 drop in the recent case. I believe it may also stem from market manipulation by centralized exchanges to push customers to adopt their own stablecoins like (GUSD, BUSD, etc.) but in the end, the drop in value would not be as serious as an earlier drop that we tested $0.70 for a stablecoin 😅
DEI, not DAI!, could not recover in the stable FUD. However, it is not a factor that effects crypto investors' financial decisions. It looks like the narrative Depegged Stablecoins is over.
Will DEI recover? I do not know. Actually, as long as I do not need to use it, it does not matter because the other stablecoins took their lessons and, at least for now, they are well-prepared for a depeg fight.
Everything is super-fast and extreme in crypto ecosystem. Even though the depegged stablecoins are putting the whole ecosystem under the threat of huge damage, we all have taken good lessons from our past experience.
The depegged stablecoins are not likely to have massive impact on crypto ecosystem if the FUD takes place once again. From the last battle, we lost USTC (Terra) and DEI as stablecoins. However, the rest of the stablecoins adopted the motto that "what does not kill me makes me stronger" by preparing themselves to similar conditions.
For the next couple of months, stablecoins are not likely to be a reason for FUD and FOMO in crypto.
Their watch has ended 🏁
