I looked at the charts so you don't have to, but over 20 stablecoins are now trading at 5% or more below their promised price, so much for being sTabLe cOinS
No bailouts, let them bleed!
1 Satoshi = 1 Satoshi
People will have to learn the hard way to be humble and stack sats!
So basically stable coins are just like any other bank deposit IOU?
Can't trust bankers to hold 100% reserves so stable coins aren't stable at all.
Pretty much yes, the stablecoin issuer isn't sitting with 100 cash for every token they issue, they're holding some sort of asset mix, some long some short duration, to put that capital to work and earn a return
While they clip fees on converting between their redemptions and short duration and cash they keep on the books.
Of the cash they keep most of it is not insured since it exceeds deposit insurance, and the banks they hold it with are obviously not holding cash either they're also leveraged to try and make money.
As for the other stablecoins on the list, they're either algo pegged to a shitcoin or pegged to the issued stable coin, so a basically a 4/5th layer promise
Your post is getting a lot of engagement.
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