Stablecoins are a favorite toy of crypto investors and a main argument for skeptics who say, “Well, at least something stable in this world.” But are they really stable, as the name promises, or are they just another way to sell you air?
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USDT: a crypto empire on feet of clay?
Tether (USDT) is the most popular stablecoin that promises that each token is backed by real dollars. But here's the thing: has anyone seen those dollars?
"We are backed by assets!"
Remarkably, only a fraction of these “assets” are debt obligations of unclear origin. And while investors pray that Tether remains solvent, regulators have long been asking uncomfortable questions.
Why do we still believe them?
Because there is a rule in crypto: if no one has checked and everything works, it means you can continue using it.
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DAI: decentralization, but with a twist
Unlike USDT, DAI is a decentralized stablecoin. It is backed by collateral that people put into smart contracts. It sounds cool, but there are a few "buts."
The problem of volatility.
If the price of Ether (DAI’s underlying asset) drops sharply, automatic liquidations can wreak havoc. Imagine one big correction and your collateral is consumed in a fire of liquidations.
What will happen to DAI in 2025?
Spoiler alert: MakerDAO (the creator of DAI) is already looking into the embrace of centralization to avoid risks. So decentralization becomes a bit conditional.
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What is happening with other stablecoins?
The competition in the market is huge: USDC, BUSD, FDUSD — all promise stability, but each has its dark spots.
USDC is the second most popular after USDT. According to Circle, the token is backed by real dollars, but everyone remembers how they "lost" their reserves at Silicon Valley Bank.
BUSD — Binance has already lost its license to issue BUSD, and this stablecoin is slowly dying, reminding us that even the biggest can lose to regulators.
FDUSD is a new contender that has stayed out of the scandals for now, but who knows how long that will last.
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Why is this important for Ukrainians?
In the context of martial law and financial restrictions, stablecoins have become an alternative to bank savings. But:
1. Risks of blockages.
Western regulators actively monitor cryptocurrency. If USDT or USDC decides that your funds are "suspicious", they can easily freeze them.
2. What to expect from the law on virtual assets?
The state promises taxes and control over crypto assets. Will this affect stablecoins? It's a matter of time.
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Finale: Are stablecoins really stability?
Yes, it’s a convenient way to store and transfer money. But it’s far from ideal. Trust in stablecoins is more a matter of belief than fact. So whether you’re storing your funds in USDT or DAI, remember: stability in crypto is always relative.
