Can a Stablecoin Really Stay Stable? Lessons From Past Failures
Algorithmic experiments have collapsed spectacularly. Here is what separates a durable peg from a fragile one.
Not all stablecoins are equal. Fiat-backed coins hold reserves; algorithmic designs tried to maintain a peg with code and incentives alone — and several unravelled when confidence broke.
The durable models are boringly simple: hold high-quality reserves, audit them, and honour redemptions. Complexity is a red flag, not a feature.
This article is for information only and is not financial advice. Always do your own research before investing in crypto assets.
Written by
Anika Patel
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