Topic: Are stablecoins safe? (Read 706 times)
Stable coins have been proven safe, every coin circulating is a reflection of 1 USD that has been validated by the USA government, this is what makes stable coins very popular and for daily transactions the largest and defeat Bitcoin since a few years ago.
Hello Crypto Fam.
So, the FSB has released a recommendation on stablecoin regulation. They are doubting the notion that stablecoins are "stable," arguing that issuers lack the necessary tools to keep their stablecoin peg at all times, implying that no stablecoin currently meets their recommendations.
This is what they said about it:
“Most existing stablecoin issuers promise (implicitly or explicitly) to maintain a stable value, typically relative to a single fiat currency. However, many of these existing stablecoins are issued by unregistered and unlicensed entities and do not have credible mechanisms to support their promise of price stability.”
What do you guys think about this? Would you recommend the use of stablecoins or they just aren't worth the risk?
Original source of the story:
https://tokenist.com/fsb-says-no-stablecoin-currently-passes-its-recommendations/
So, the FSB has released a recommendation on stablecoin regulation. They are doubting the notion that stablecoins are "stable," arguing that issuers lack the necessary tools to keep their stablecoin peg at all times, implying that no stablecoin currently meets their recommendations.
This is what they said about it:
“Most existing stablecoin issuers promise (implicitly or explicitly) to maintain a stable value, typically relative to a single fiat currency. However, many of these existing stablecoins are issued by unregistered and unlicensed entities and do not have credible mechanisms to support their promise of price stability.”
What do you guys think about this? Would you recommend the use of stablecoins or they just aren't worth the risk?
Original source of the story:
https://tokenist.com/fsb-says-no-stablecoin-currently-passes-its-recommendations/
Stablecoins will be safer than other cryptocurrencies, but no cryptocurrency is truly safe, and neither is a stablecoin.
Long-term holding of stablecoins is risky. Investing in Bitcoin at low prices can diversify risks and be able to gain profits when prices rise to increase value.
It is safe because it is tethered to a dollar price and with that alone it is safe to say the Stable Coins are the best way to save in this industry. This means you will be the best benefits when market is down, hence stable coins are pegged to a dollar value and with that you will have nothing to worry about price mark downs in your portfolios.
No need to hesitate to say that stable coins are safe assets, they are supported by strong legality and all stable coins circulating are real from USD deposits and get strict supervision so that I say that stable coins are very safe and worthy of being assets to move other coins .
yes, stablecoins are indeed the goal for that and almost everyone will say the same thing, but based on experience it seems that nothing can guarantee that it will always be safe, but in crypto there are always loopholes and outside of thought analysis. but comparing with the others we have to admit stablecoin is the safest asset and you are right buddy. 
The price of Tether (USDT) will eventually collapse, but not now. There are many more things that haven't been audited in USDT, which has caused speculation.
Therefore, USDC exists. Transparency and full backing are the hallmarks of USDC. However, anything is possible now that they can find ways to crash it. If you want to use DAI, you can do so. DAI> USDC > USDT. Yet it's probably not a smart move to invest in stablecoins.
Therefore, USDC exists. Transparency and full backing are the hallmarks of USDC. However, anything is possible now that they can find ways to crash it. If you want to use DAI, you can do so. DAI> USDC > USDT. Yet it's probably not a smart move to invest in stablecoins.
In the past few years, many people predicted USDT would crash, and I still see many people saying the same thing today. However, USDT is still the largest cap and most used stablecoin by far.
Honestly, I see all stablecoins as the same, they are not so different, USDT, USDC, or BUSD are all the same. All are equally concentrated and risky, no one is safer than the other. Their mission is to be an intermediary asset to help us access bitcoin easier, they are not an investment, so there is no need to compare or distinguish, they are not suitable for long-term holding.
The price of Tether (USDT) will eventually collapse, but not now. There are many more things that haven't been audited in USDT, which has caused speculation.
Therefore, USDC exists. Transparency and full backing are the hallmarks of USDC. However, anything is possible now that they can find ways to crash it. If you want to use DAI, you can do so. DAI> USDC > USDT. Yet it's probably not a smart move to invest in stablecoins.
Therefore, USDC exists. Transparency and full backing are the hallmarks of USDC. However, anything is possible now that they can find ways to crash it. If you want to use DAI, you can do so. DAI> USDC > USDT. Yet it's probably not a smart move to invest in stablecoins.
In the past few years, many people predicted USDT would crash, and I still see many people saying the same thing today. However, USDT is still the largest cap and most used stablecoin by far.
Honestly, I see all stablecoins as the same, they are not so different, USDT, USDC, or BUSD are all the same. All are equally concentrated and risky, no one is safer than the other. Their mission is to be an intermediary asset to help us access bitcoin easier, they are not an investment, so there is no need to compare or distinguish, they are not suitable for long-term holding.
There are quite a lot of different stablecoins on the market right now, and it's not entirely clear why there are so many of them being produced. If earlier there was only one main coin called USDT, now there are much more of them. Of course, if you study this issue in more detail, it is not recommended to buy stablecoins with a small capitalization. It is better to make your choice towards USDT, since its market capitalization is approximately equal to two stablecoins called USDC and BUSD (Binance USD).
BUSD still not safe . because that peg depend in Binance . if Binance exchange crash like a top exchange FTX then BUSD will also crash like Terra peg UST . so in my opinion USDT & USDC i can consider as a safe stablecoin. and i like to hold USDT must of the time. USDC also can be holdable I am not on their side but if you will read this it is a more regulated stable coin as of now.
https://www.binance.com/en/blog/ecosystem/understanding-busd-and-binancepeg-busd-5526464425033159282
However, I will not consider stablecoins safe in holding.
- I'm not a fan of stablecoins but when I do p2p transactions I use USDT, which I can't deny helps me withdraw money from a centralized exchange platform.
Maybe somehow I can say that it's safe as long as it's not a big amount, but of course, that depends on your trust. Because I'm doing it now, using binance so far Busd, Usdt, and usdc are okay for me. Other's would agree with me and some are not, but we have our own choice in terms of this matter anyway.
Yeah, that is a good way to use it, but there is also the fact that we are not seeing what USDT could be used for online as well. Like if I had a website then I would accept USDT as payment for buying something. I have a friend who is a developer and he sometimes accepts USDT as well, and usually BUSD but generally he accepts stablecoins, not like he rejects crypto neither, but people usually are fine with stablecoins so he works with them, turns them into crypto right away of course after he gets them.Maybe somehow I can say that it's safe as long as it's not a big amount, but of course, that depends on your trust. Because I'm doing it now, using binance so far Busd, Usdt, and usdc are okay for me. Other's would agree with me and some are not, but we have our own choice in terms of this matter anyway.
So over all for payment purposes USDT and BUSD are great, what you do afterwards is upto you, but the transaction itself is not a bad idea at all.
There are quite a lot of different stablecoins on the market right now, and it's not entirely clear why there are so many of them being produced. If earlier there was only one main coin called USDT, now there are much more of them. Of course, if you study this issue in more detail, it is not recommended to buy stablecoins with a small capitalization. It is better to make your choice towards USDT, since its market capitalization is approximately equal to two stablecoins called USDC and BUSD (Binance USD).
BUSD still not safe . because that peg depend in Binance . if Binance exchange crash like a top exchange FTX then BUSD will also crash like Terra peg UST . so in my opinion USDT & USDC i can consider as a safe stablecoin. and i like to hold USDT must of the time. USDC also can be holdable I am not on their side but if you will read this it is a more regulated stable coin as of now.
https://www.binance.com/en/blog/ecosystem/understanding-busd-and-binancepeg-busd-5526464425033159282
However, I will not consider stablecoins safe in holding.
There are quite a lot of different stablecoins on the market right now, and it's not entirely clear why there are so many of them being produced. If earlier there was only one main coin called USDT, now there are much more of them. Of course, if you study this issue in more detail, it is not recommended to buy stablecoins with a small capitalization. It is better to make your choice towards USDT, since its market capitalization is approximately equal to two stablecoins called USDC and BUSD (Binance USD).
BUSD still not safe . because that peg depend in Binance . if Binance exchange crash like a top exchange FTX then BUSD will also crash like Terra peg UST . so in my opinion USDT & USDC i can consider as a safe stablecoin. and i like to hold USDT must of the time. USDC also can be holdable 
There are quite a lot of different stablecoins on the market right now, and it's not entirely clear why there are so many of them being produced. If earlier there was only one main coin called USDT, now there are much more of them. Of course, if you study this issue in more detail, it is not recommended to buy stablecoins with a small capitalization. It is better to make your choice towards USDT, since its market capitalization is approximately equal to two stablecoins called USDC and BUSD (Binance USD).
One of them is based on bitfinex exchange basically, but Tether is its own company based on Bahamas, and even with all of that red flag, it reached the peak levels of stablecoin domination, still the biggest by far. USDC is based on coinbase, and they are the most trusted crypto company in the crypto world, the amount of regulations and audits that they go through is insane, not that it is impossible to trick the system, many did, but it would be insanely terrible with insane jail time for them, so they are careful at all turns.BUSD is binance, which means they are the biggest, not stablecoin BUSD but binance itself, so you know they would want to stay afloat when they are already raking in billions anyway.
- I'm not a fan of stablecoins but when I do p2p transactions I use USDT, which I can't deny helps me withdraw money from a centralized exchange platform.
Maybe somehow I can say that it's safe as long as it's not a big amount, but of course, that depends on your trust. Because I'm doing it now, using binance so far Busd, Usdt, and usdc are okay for me. Other's would agree with me and some are not, but we have our own choice in terms of this matter anyway.
Maybe somehow I can say that it's safe as long as it's not a big amount, but of course, that depends on your trust. Because I'm doing it now, using binance so far Busd, Usdt, and usdc are okay for me. Other's would agree with me and some are not, but we have our own choice in terms of this matter anyway.
It is difficult to call it a stablecoin, since its value is tied not to the fiat dollar, but to the value of gold. And given the fact that the value of gold is as volatile as the value of bitcoin, the price of Gold will not be constant against the dollar and, accordingly, will not be able to save you money.
Well there are other stable coins tied to different fiat currencies then USD and gold has been pretty stable and holds value better then Fiat money in a long run so i don't see problems calling tokens that are backed by it stablecoins. As long as they indeed are 100% backed by it.
I had stored most of my funds in the Gold Stablecoin, where you can exchange your Etherium and BTC for Gold. For the time being, I'm seeing that it is as stable as I think. Recently they had a bounty campaign also running, but I think it is still running. This is just my opinion, you can try other stablecoins, according to your research.
It is difficult to call it a stablecoin, since its value is tied not to the fiat dollar, but to the value of gold. And given the fact that the value of gold is as volatile as the value of bitcoin, the price of Gold will not be constant against the dollar and, accordingly, will not be able to save you money.
I had stored most of my funds in the Gold Stablecoin, where you can exchange your Etherium and BTC for Gold. For the time being, I'm seeing that it is as stable as I think. Recently they had a bounty campaign also running, but I think it is still running. This is just my opinion, you can try other stablecoins, according to your research.
I don't know much about this gold stablecoin. I'm a little interested to know. and maybe will start researching about the stablecoin a little. because the price follows the original gold price. then of course the price movement may not be too affected by inflation. So I guess this one is worth looking into. That is about security. because so far I have only used BUSD for stablecoins.They have a bounty campaign on our forum and it's been running for over 2 years and they're still going. I've known about this stablecoin for quite some time but I still haven't seen it really popular, I think if it really has potential then maybe it would have become popular.
In my opinion, stablecoins are altcoins, which means they are not completely safe but as long as we use them properly, we can limit the risk somewhat.
https://bitcointalksearch.org/topic/bounty-gold-stablecoin-200000-payouts-in-btc-eth-gold-5164058
I had stored most of my funds in the Gold Stablecoin, where you can exchange your Etherium and BTC for Gold. For the time being, I'm seeing that it is as stable as I think. Recently they had a bounty campaign also running, but I think it is still running. This is just my opinion, you can try other stablecoins, according to your research.
I don't know much about this gold stablecoin. I'm a little interested to know. and maybe will start researching about the stablecoin a little. because the price follows the original gold price. then of course the price movement may not be too affected by inflation. So I guess this one is worth looking into. That is about security. because so far I have only used BUSD for stablecoins. 
Centralized projects mostly have bad ends. We can't hide the huge impact of Luna in the market making many investors worry that any of these days another Stablecoin and a centralized project will follow. Of course, USDT and BUSD still gain trust among stablecoins in the market but we should still be careful as we never know exactly what is their plan.
I can be honest myself that I lose trust in any of them, might it will change in the future but in this current situation, I consider investing in them to be at high risk.
I do agree that Luna had a huge impact, but FTX also had another one, and if we keep being in the bear market we are going to keep seeing more. Do you truly believe that if EVERY person withdrew from their USDT, that won't crash? They can cover 20-30 billion, but could they cover ALL of it? There will be a point where they will say they can't pay everyone back and it would be horrible.I can be honest myself that I lose trust in any of them, might it will change in the future but in this current situation, I consider investing in them to be at high risk.
This is what happened with FTX as well, people all wanted to withdraw and caused trouble, same could happen with USDT as well. This is why there is no guarantee that stablecoins are safe, and even the market is not safe and that matters a lot to the users and the investors for stablecoin.
Stable coins in my opinion are safe because they are issued by official companies, the amount of stock stable coins based on real assets so as to make me do not hesitate to stable coins such as USDC, Busd, Tether as coins to store assets so they are not affected by market conditions.
I had stored most of my funds in the Gold Stablecoin, where you can exchange your Etherium and BTC for Gold. For the time being, I'm seeing that it is as stable as I think. Recently they had a bounty campaign also running, but I think it is still running. This is just my opinion, you can try other stablecoins, according to your research.
You need to be very careful and check the value of your coins continuously, I say this because over the years there have been many coins which claim to be backed by gold and they never last long, so it is possible the coin in which you invested your money is not going to be an exception to this, I think that if you want to be out of this market for some time that is respectable, but if that is the case then you need to get fiat, stable coins are simply to vulnerable to manipulation by those which can create those tokens.As far as I know, this Gold coin has an audit which you can check through their website. also they have a certificate from Bullionstar. So, for Gold it should be safe. Because you can check the value of the backed gold they have stored in Bullionstar anytime. even so, caution must still be on top an i agree with you, because after all the smart contract system may experience an exploit that can makes investors lost.
I suggest keeping it in USDT only because USDT is really backed by the actual USD that is held in reserve by Tether Limited,
Maybe you can check this article before you say USDT very safehttps://www.forbes.com/advisor/in/investing/cryptocurrency/what-is-tether-usdt/
better to keep your money in your local bank than USDT if you are not trading for a long time
The price of Tether (USDT) will eventually collapse, but not now. There are many more things that haven't been audited in USDT, which has caused speculation.
Therefore, USDC exists. Transparency and full backing are the hallmarks of USDC. However, anything is possible now that they can find ways to crash it. If you want to use DAI, you can do so. DAI> USDC > USDT. Yet it's probably not a smart move to invest in stablecoins.
Indeed stable coins are an effective way to store the ownership of the assets we have. But it's best not to change the assets we have into stable coins for too long. Because if market conditions have improved, having alt is a more appropriate choice Therefore, USDC exists. Transparency and full backing are the hallmarks of USDC. However, anything is possible now that they can find ways to crash it. If you want to use DAI, you can do so. DAI> USDC > USDT. Yet it's probably not a smart move to invest in stablecoins.
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