So can we still trust stablecoins?
The stablecoin wars.
We heard so much from Cryptogeddon 2022 possibly triggered by the fall out of Terra / Luna and the invincible Do Kwon.
I do have a burning question:
So are stablecoins trustworthy?
Stablecoins can be:
A) Backed by real Fiat
B) Backed by cryptocurrencies
C) Algorithmically- stabilised
Each stablecoin presents its own risks.
USN is the new kid on the block, they may not be around for long.
USDC seems to have the public’s trust for now, but they are centralised and your privacy is compromised to some extent.
USDD is by the notorious Justin Sun, which is saying a lot already. I can’t keep a straight face when I speak about this boisterous character.
USDT is the heavyweight champion of the world, but apparently has so much controversy, you might as well invest back in UST.
Rule of thumb is to diversify and limit exposure to no more than 10%.
A Luna investor went to Do Kwon house and wrote a note on livestream that he was going to surrender to the police.
“On Friday, South Korean media outlet MoneyToday wrote an unidentified person broke into her apartment building, rang the doorbell to ask if Kwon was home, before leaving the premises after she said he wasn’t.”
This is getting out of hand.
You don’t mess with someone’s family.
Whatever it is, let Do Kwon take responsibility and face the music.
Leave his family out of this.
Then again, people have lost life savings and their entire net worth.
It is heart wrenching and I do hope Do Kwon’s family is safe.
Without condoning or condemning, I understand.
For those affected by this hot mess, I don’t have any safe advice or motivational wisdom for you.
I don’t want to pretend to be a saint or a magical crypto healer that can wash away your pain or grief or better yet, recuperate your losses magically.
Learn from this episode and be mentally stronger.
I keep hearing people say “oh I told you so” and why didn’t you “do your own research”?
Oh please, save me the platitudes and false wisdom.
Come on, big time institutional investors, industry leviathans, crypto einsteins with IQ 400+ and people much smarter than me all “did their own research” and still got burnt badly.
Sure, there was some greed and oversight mixed into it but no more than anything else in life.
Sometimes, you just get some bad luck.
You can do everything right and still lose.
Just don’t beat yourself up too badly and keep your head high.
It will suck for a while, and then it’s going to be alright.
What we lost, we can rebuild.
What we learn, we keep with us forever.
Can we still trust stablecoins?
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