Stablesats uses exchanges and it is connected to fiat system because you are trying to create synthetic USD (fiat).

Its not difficult to shutdown custodial setup with lot of users, volume etc. that do not follow regulations. It is irresponsible to hide the risks involved because this can ruin careers for lot of young developers, users etc. who just might want to experiment with it.

Stablesats is pegged to usd but is not actually connected to the system, as far as I know. At least not like stablecoins are.

Of course it carries its own risks, and I agree they should not be hidden!