2) I prefer calling them "Pegged Coins". I think it is a more accurate Term Than "Stablecoins"

While the term stablecoin suggests that these digital assets maintain a steady value, this is misleading because their stability is entirely dependent on external mechanisms.

🤔 Why "Stablecoins" are not actually "stable":

- Dependent on backing mechanisms: most stablecoins rely on collateral (e.g., fiat reserves, bonds cryptocurrencies, or algorithms) to maintain their peg. If the backing fails (e.g., reserves are mismanaged, algorithms break, or liquidity dries up), the peg can collapse, leading to drastic devaluation, as seen in cases like TerraUSD (UST).

- Susceptible to market forces: even well-managed stablecoins can deviate from their peg during extreme market volatility or liquidity crises (e.g., USDC briefly depegging during the 2023 banking crisis).

- Centralization risks: many stablecoins are controlled by centralized entities that can freeze funds or alter terms, undermining the "stability" narrative.

🤔 Why "Pegged Coins" is a better term:

- Transparency: the term acknowledges that the asset’s value is artificially maintained rather than organically stable.

- Risk awareness: it reminds users that pegs can break, unlike the term "stablecoin," which may falsely imply safety.

- Broader scope: some pegged coins track assets other than fiat (e.g., commodity-pegged or algorithmic coins), making "pegged" a more inclusive term.

TLDR; "Pegged coins" is a more honest description, as it reflects the reality that their value is enforced rather than inherently stable.