Are stablecoins safe? - page 4. | Bitcointalksearch.org

ethereumhunter

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Quote from: tvplus006 on November 26, 2022, 08:57:30 AM

Quote from: ethereumhunter on November 26, 2022, 03:13:31 AM

You don't need to worry about whether stable coins are safe or not. Maybe what makes you feel insecure is that you are keeping stable coins on an exchange which could get you into trouble at any time. But if you keep stable coins in other wallets, it will be safer...

If you think that storing a stablecoin on your wallet is safe, then you should remember such stablecoins as UST, which lost its peg to the dollar and crashed. In that case, no matter where you stored UST, you ended up losing your money.

No, I will not use UST because I prefer USDT or BUSD rather than UST. I am also more familiar with those stablecoin than the other stablecoins. Storing USDT or BUSD in any wallet we can control will be safe. But I do not have the plan to hold stablecoin for the long term instead trying to buy bitcoin when the price is down. For me, a stablecoin is just a temporary place to save the value of my crypto assets before I convert it into bitcoin.

WalkerIVIV

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That might be the case but if you could just use the most used stablecoin I think you will be fine, but always diversify your wealth that's in stablecoin into some various stablecoin that way you'll be safe from sudden crash of stablecoin therefore you could never just lost your wealth overnight.
I think the key is how you manage this wealth in this case, everything has risk, even fiat money still have fluctuation and even gold could lose its value.

Rengga Jati

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Quote from: ChillyMatthew on October 12, 2022, 09:32:27 AM

What do you guys think about this? Would you recommend the use of stablecoins or they just aren't worth the risk?

The security here may be due to the backup of the stablecoins. and this is one of the reasons why you choose and invest in stablecoins. However, if you ask whether it is safe or not. Every technology and system will definitely not be 100% perfect so there will still be errors. Therefore, we cannot guarantee that it is safe.

Sometimes, some people are using certain news to utilize the condition, both for taking profits, getting more cryptos, and others. And some other people are also using stablecoins because of the stable condition and also backup with strong fundamentals.

Stalker22

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In the not so distant future, we might see that any price volatility is mitigated by blockchain technology, but that day is not here yet. As such, there are several different stable coins to choose from for added stability when purchasing cryptocurrencies. If you are looking for a way to hedge against cryptocurrency volatility, then you might be interested in integrating stable coins into your portfolio. For anyone who just wants to long Bitcoin, however, it is likely that holding Bitcoin directly is the better course of action.

However, there is still much promise behind these coins. The model works, it's just going to take some more time before any stablecoin offers Bitcoin-like levels of stability and security. The risks of holding the most popular stablecoins are well-known. Those risks include their centralized nature, their reliance on an outside institution to maintain a fixed exchange rate, and their susceptibility to regulatory actions taken against that institution. There are also the risks of their technology being hacked, a malicious actor taking control of the system, or simply failing as a result of poor code.

Jackl87

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Quote from: ChillyMatthew on October 12, 2022, 09:32:27 AM

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.
What do you guys think about this? Would you recommend the use of stablecoins or they just aren't worth the risk?

The simple truth in my opinion is, that no crypto stable coin that exists right now is really 100% safe, so waht the FSB is saying is definitely true in my opinion. I mean just look at what happened with Terra Luna a few months ago. They could not hold their stablecoin at the dollar peg anymore and that killed the whole company and brought the rest of the crypto market down. Without the events of Terra Luna i think FTX would not be bankrupt today.
Also USDT has also lost it's PEG for a few days. According to coinmarketcap it is at 0,9996 at the moment. Of course this is only a very small deviation from it's peg but still. As long as their is no official digital $ or € we won't have real stablecoins.

Eureka_07

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Quote from: ChillyMatthew on October 12, 2022, 09:32:27 AM

Tether (USDT) is different from these algorithmic stablecoins.
Algorithmic stablecoins are backed by other coins to maintain its price to it's promise value. This method of buying back affects the value of the both coins which can sometimes cause for the fall of an stablecoin just like what happened to UST. That is one reason why it is less trustworthy than USDT which uses its own reserves to buy back and regain being 1:1 to US dollar.

devil2man

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At the moment many stable coins are no longer "stable" their value against the dollar has dropped slightly (usdt) but they are one of the safest things in the world of cryptocurrencies, for me a point of reference

goaldigger

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Quote from: Sang Prabu on November 26, 2022, 09:17:56 AM

Since I know the stable coins, I immediately move the assets to the coin stable, and several times I can save the assets so as to avoid greater losses, and I think stable coins that have strong power are USDT and BUSD, So the conclusion is that the coin stable is very good and safe.

Hard to say its 100% safe after all the big issues about stable coins, we might safely say it for now but hard to predict the future, as many says Bitcoin is the only safe coin because its purely decentralized and even big investors believes on the same thing. Holding stable coins might save you from volatility, but again you should still analyze it before holding.

Ultegra134

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Quote from: Wexnident on November 25, 2022, 11:02:43 PM

Just look at Luna(UST) then I reckon you'd get your answer. It may be a single instance, but it's still an instance nonetheless to take into account. I'd honestly just avoid holding any stablecoins for a long period of time if possible, I've only ever used stablecoins when paying/moving stuff, the rest of what is in my wallet is always invested in some crypto for the long term.

Here's an old post by mk4 about stablecoins
https://bitcointalksearch.org/topic/updated-psa-most-stablecoins-can-be-frozen-even-in-your-own-wallets-5204055

You're comparing an algorithmic stablecoin (UST) with established stablecoins such as USDT and USDC. The latter are deemed safe enough to use and have hardly ever lost their $1 peg. Even when they did, they quickly recovered. That's not the case with algorithmic stablecoins, though, which can be deemed extremely risky because they rely on two types of tokens: a stablecoin and another token supporting the aforementioned stablecoin. There are several examples of failed ones out there, such as BoltDollar or UST. It's easy to mention that plenty can go wrong with them, and they're not actually guaranteed to have a secure 1:1 dollar peg (see USDN, FEI, or DEI).

albon

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Quote from: Sayeds56 on November 26, 2022, 07:23:50 AM

Quote from: Antonas1 on November 26, 2022, 06:41:30 AM

For me now, stable coins are not useful. Why do we exchange BTC/altcoins into tokens like USDT/USDC/UST, or whatever, when they have no difference with fiat? I'd rather convert my coins directly to fiat.
Is it safe? No, because the 1:1 claim against the US dollar is just a unilateral claim. Actually, you have read about it in an article that you include.

Though stable coins relatively less risky as they are supposed to be backed by Fiat currencies, but we can't say that they are 100% safe in particular algorithmic coins like UST. We have seen in the recent past how billions of dollars were wiped out from market within days when UST peg was broken. One thing we need to keep in my mind that crypto highly rewarding but highly risky too so secure your investment/trade buy using all risk management tools.

Yes, there is nothing 100% safe in the crypto market. We have to agree on that. Also, do not forget that USDT lost its peg previously, and its price decreased to $0.96, and its team confirmed that it will restore its price again by buying back from its own reserves. USDT is one of the largest cryptocurrencies in The crypto market after Bitcoin and Ethereum, and if we assume that something happens to USDT, I see that it will be a disaster and the end of crypto. At the present time, the price of USDT remains stable, but for how long? No one can answer this question, so what I advise is not to put our money in one stablecoin and divide it into some other stablecoins.

Sang Prabu

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Since I know the stable coins, I immediately move the assets to the coin stable, and several times I can save the assets so as to avoid greater losses, and I think stable coins that have strong power are USDT and BUSD, So the conclusion is that the coin stable is very good and safe.

posi

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Quote from: fzkto on November 26, 2022, 05:48:35 AM

Quote from: MFahad on November 26, 2022, 05:38:44 AM

Some Stable coins are safe as far as crypto system remians like Usdc and Dai which are backed by. Usdt and some others stable coins are not fuy secure and any time it can rugged like Ustc. After Ftx collapse I withdraw my 80% stable coin to fiat and now just using 20% for trading etc.

It seems to me that these stabelcoins are safe until something bad happens. LUNA UST, for example, was also said to be safe and no one could take your money from you. But trouble came when it wasn't supposed to. USDC is centralized, so your funds can be blocked, just like USDT. I agree about DAI, it is the only decentralized stable that is fine for now, but nobody knows what can happen with it in the future.

As you say nothing is safe in this market and I agree with that, everything will be fine until it crashes. It can be said that there is no such thing as absolute security in this world, everything is relative and the crypto market is uncertain and unsafe. Once entering the market, we should remember that there is no concept of eternal security here even if it is decentralized. I have an old piece of advice for the OP, only invest with what you're willing to lose.

tvplus006

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Quote from: ethereumhunter on November 26, 2022, 03:13:31 AM

You don't need to worry about whether stable coins are safe or not. Maybe what makes you feel insecure is that you are keeping stable coins on an exchange which could get you into trouble at any time. But if you keep stable coins in other wallets, it will be safer...

If you think that storing a stablecoin on your wallet is safe, then you should remember such stablecoins as UST, which lost its peg to the dollar and crashed. In that case, no matter where you stored UST, you ended up losing your money.

o48o

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Quote from: ChillyMatthew on October 12, 2022, 09:32:27 AM

What do you guys think about this? Would you recommend the use of stablecoins or they just aren't worth the risk?

Stablecoins are one of the reasons we has as much liquidity and high prices as we do. I don't think that most people are against regulating/auditing them so that endless fud on them would end. And if trust on stable coins would increase, so would the market price of most coins.

Current situation is that anyone can just create algorithmic stablecoin and have no rules that requires them to provide any proof of reserves. Which is absurd when you think about it.

This will now change and obviously there will be some cryptopunks against it, as not only governments want to audit the reserves. They will most likely end up regulating more anyone asked for. But it's not like we have an option to stop them to do that.

Sayeds56

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Quote from: Antonas1 on November 26, 2022, 06:41:30 AM

For me now, stable coins are not useful. Why do we exchange BTC/altcoins into tokens like USDT/USDC/UST, or whatever, when they have no difference with fiat? I'd rather convert my coins directly to fiat.
Is it safe? No, because the 1:1 claim against the US dollar is just a unilateral claim. Actually, you have read about it in an article that you include.

Though stable coins relatively less risky as they are supposed to be backed by Fiat currencies, but we can't say that they are 100% safe in particular algorithmic coins like UST. We have seen in the recent past how billions of dollars were wiped out from market within days when UST peg was broken. One thing we need to keep in my mind that crypto highly rewarding but highly risky too so secure your investment/trade buy using all risk management tools.

Antonas1

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For me now, stable coins are not useful. Why do we exchange BTC/altcoins into tokens like USDT/USDC/UST, or whatever, when they have no difference with fiat? I'd rather convert my coins directly to fiat.
Is it safe? No, because the 1:1 claim against the US dollar is just a unilateral claim. Actually, you have read about it in an article that you include.

MoonOfLife

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Quote from: ChillyMatthew on October 12, 2022, 09:32:27 AM

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/

Bitcoin is also not safe let alone stable coins, once investing in crypto you should know that this market is full of risks. Your assets can be lost, disappeared or hacked at any time. In my opinion, stablecoins are altcoins so their safety is considered similar to altcoins. Do you believe altcoins are safe?

pawanjain

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The only time I am using stable coins is when I am trading something for which BTC pair isn't available or at the time of withdrawing it to cash.
The rest of the times I hold the coins. I mostly prefer USDC and USDT is my second priority. Rest all are out of my bucket.
I cannot really say if stable coins are really stable or safe or not because of the recent events of LUNA and FTT.
But if you wanna buy stable coins then prefer USDC and that too only for a very short time.

fzkto

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Quote from: MFahad on November 26, 2022, 05:38:44 AM

Some Stable coins are safe as far as crypto system remians like Usdc and Dai which are backed by. Usdt and some others stable coins are not fuy secure and any time it can rugged like Ustc. After Ftx collapse I withdraw my 80% stable coin to fiat and now just using 20% for trading etc.

It seems to me that these stabelcoins are safe until something bad happens. LUNA UST, for example, was also said to be safe and no one could take your money from you. But trouble came when it wasn't supposed to. USDC is centralized, so your funds can be blocked, just like USDT. I agree about DAI, it is the only decentralized stable that is fine for now, but nobody knows what can happen with it in the future.

MFahad

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Some Stable coins are safe as far as crypto system remians like Usdc and Dai which are backed by. Usdt and some others stable coins are not fuy secure and any time it can rugged like Ustc. After Ftx collapse I withdraw my 80% stable coin to fiat and now just using 20% for trading etc.

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