Algorithmic, fiat-backed or crypto-backed: What’s the best stablecoin type?
TerraUSD (UST) flipping BinanceUSD (BUSD) for the third spot in the market capitalization list didn’t last long. The once-mighty stablecoin that powers the entire ecosystem finds itself reduced to “Terra is more than UST” tweets. While no one knows for sure if LUNA can stage a comeback, UST will certainly go down as one of the algorithmic stablecoins that went kaput in the same fashion as Basis Cash — which Terra creator Do Kwon was allegedly a part of — and Mark Cuban-backed Iron Finance.
UST’s failure begs the question if algorithmic stablecoins are truly just doomed to fail? And, is fiat-backed or crypto-backed stablecoin the only way investors can find the most “stable” way to shield themselves from the crypto market’s volatility?
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