Be careful with new projects that introduce new Stable coins

suzanne5223

hero member

Activity: 2660

Merit: 651

Want top-notch marketing for your project, Hire me

Quote from: Charles-Tim on December 30, 2022, 05:16:44 AM

Quote from: Outhue on December 30, 2022, 04:41:57 AM

Be sure to understand how a Stable coin is designed before storing your assets using them, most stable coins have failed since last bear market season, from USDN to UST and USN, there are many more that I don't mentioned.

There were many that failed even before the last bear market season, some has been failing many years ago and they are mostly algorithmic stable coin if not all are algorithmic stable coins. People were warned of stable coins like UST the were algorithmic that were later created not quite long. Many failed again as usual.

Honestly, it's the Newbies and the people who are not well experienced in the stablecoin market that needs to be careful because there's no way a stablecoin relies on a volatile crypto asset to support its aforesaid stablecoin won't fail. This is the reason why I never liked Luna terra and their stablecoin right from the beginning but the hype involved has blind a lot of crypto users.

Utopia USD (UUSD) is a stablecoin soft-pegged to the U.S. Dollar that features instantaneous transactions at low cost. UUSD transactions are completely private and do not reveal any identifying information.

Quote from: Hispo on December 31, 2022, 09:16:51 PM

I had kept an eye on the USDN (Neutrino USD) since a while ago because I indeed expected it to lose its peg after the collapse of Terra-Luna, months passed and nothing happen. After reading OP I went to check the situation with that stablecoin and indeed it has lost its value for over 50%. People do not learn when comes to logarithmic stablecoins.

I agree with you, of course, for now on I'll check USDD often to see what happens to it.
Personally, my preferred Stablecoin is DAI.

USDN is another failed algorithmic stablecoin right from creation if you know about its birth of it but USDD is not an algorithmic stablecoin, is it?

I prefer USDC, BUSD, and DAI, but I like UUSD more. Because it's the only privacy stablecoin we have in the entire cryptocurrency market and it is the stablecoin I swap all my USDT into after the news of Tether's confiscation of about $500 Million USDT at the regulator's request happened last year.

goaldigger

sr. member

Activity: 2422

Merit: 357

Quote from: Hildentine on January 03, 2023, 03:14:00 PM

In this case i said that i totally agree of this statement because in this time many new projects are coming and those people who trust in those projects so they easily scam with there users.
So be careful and use only those Stablecoin which we use a long time.
I can't say that every Stablecoin are fully secure but usdt , dai , usdc etc are a trusted coins so use this.

If those new projects are using such stablecoin I think it will be fine but if they are going to introduce their own stablecoin, that could be the start of the red flag and you should not invest right away just because they said its safe and effective. Remember, there’s already an issue with the stablecoin so claiming to have one is not safe anymore. If you still fall on those projects, you might regret it later on so be wise on investing.

passwordnow

hero member

Activity: 3066

Merit: 577

Leading Crypto Sports Betting & Casino Platform

Everyone has to be aware that anytime, any of these stable coins can go south and be the same as the other collapsed stable coins. That's all we have to remember. Whether they're centralized or decentralized, there's a likely that we don't really have an idea if any of them is already in danger and our money kept there will be gone forever. That's why, everything is of possibility and just be aware of what potentially can happen and that's the warning that everyone should take since we're in the crypto market.

Hildentine

jr. member

Activity: 286

Merit: 1

In this case i said that i totally agree of this statement because in this time many new projects are coming and those people who trust in those projects so they easily scam with there users.
So be careful and use only those Stablecoin which we use a long time.
I can't say that every Stablecoin are fully secure but usdt , dai , usdc etc are a trusted coins so use this.

Cantsay

hero member

Activity: 700

Merit: 541

Bitcoin Casino Est. 2013

Quote from: ?? on ??

I don't understand why there are so many stablecoins and why everyone wants to have one. It's pointless, and they most likely won't move the giants of this market.

I think you need to research more on what stable coin is used for before you start saying crap about it.
Stable coins were created not for investors to make profit from but to help counter crypto's Hallmark volatility and also to make cryptocurrency more predictable.

You can check out this link. https://www.coindesk.com/learn/whats-the-point-of-stablecoins-understanding-why-they-exist/ to understand more about stablecoins and why they exist, what's their usage etcetera etcetera etcetera.

tvplus006

legendary

Activity: 2268

Merit: 1655

To the Moon

Quote from: ?? on ??

I don't understand why there are so many stablecoins and why everyone wants to have one. It's pointless, and they most likely won't move the giants of this market.

It is everyone's dream to exchange their printed coins for real dollars or a cryptocurrency that has real value. And as a rule, such stablecoins, contrary to their essence, do not have assets that would provide and maintain their value. So new stablecoins can be said to appear due to the greed of their issuers.

Ararbermas

sr. member

Activity: 1988

Merit: 283

At the first place it doesn't really make any sense to be honest, wherein if you trust a new projects that offer a stable coins because indeed there's already alot of good stable coins that existing in the market and very reliable until now.. So it's a stupid decision to find new ome or should i say to trust new one.. Be practical instead to assure everything is in a safe place that's the most important.

Outhue

sr. member

Activity: 686

Merit: 403

Quote from: ?? on ??

I don't understand why there are so many stablecoins and why everyone wants to have one. It's pointless, and they most likely won't move the giants of this market.

How is having your money in stablecoin pointless? Do you even understand why Stablecoins existed? Judging from your comment it looks like you don't even know why every crypto investor needs Stablecoin, it is impossible to make gains holding Stablecoins but they keep your value in check, 1$ remains 1$ and while the market is dropping your money stays the same.

If you want go get the best deals on crypto in a bear market you need stablecoins to avoid volatility and buy when the opportunity arises.

Anonylz

hero member

Activity: 2562

Merit: 577

Quote from: Outhue on December 30, 2022, 04:41:57 AM

Be sure to understand how a Stable coin is designed before storing your assets using them, most stable coins have failed since last bear market season, from USDN to UST and USN, there are many more that I don't mentioned.

Some new projects will come as whatever they like, either DeFi or Smart contract and they will introduce new Stable coin, be careful, in fact I don't see any reason why you should keep your dollars using a new Stable coin when we have USDT, USDC, DAI and BUSD..

Centralised or Decentralised you can just make a pick from USDC , USDT, DAI or BUSD

Absolutely, the important part is to use a known stablecoin with some level of security (none of them can be considered 100% safety but they are less riskier than a complete new project).
Better to be safe than sorry, it is better to leave it on fiat than lose it on worthless stablecoin.

sana54210

legendary

Activity: 3276

Merit: 1128

Quote from: tvplus006 on January 03, 2023, 07:32:40 AM

Quote from: jaberwock on January 02, 2023, 04:44:22 PM

...I never trusted anything that is centralized and we all know that most of them are centralized and that is why they suck. If that is the case then why wouldn't I pick btc? Maybe not stable but more secure and that's why it's definitely a great thing for me. I know for a fact that I have never lost a single satoshi, and been here for a long time, I am going to keep it that way.

The purpose of investing in bitcoin and stablecoin is very different. By buying a stablecoin, we aim to save our money, and by buying bitcoin we want to increase it. But it is precisely this desire to increase your deposit that can lead to its loss. One should not think that the value of BTC will eventually increase constantly, because the opposite may happen. One should not think that the value of BTC will eventually increase constantly, because the opposite may happen, since it is a cryptocurrency here, which means there are high risks.

I do not think that opposite could happen. Bitcoin price will always go up, doesn't mean that it won't have periods when it goes down, but it will always go up eventually and that's what matters. I know not many people see it that way but that's the reality and that's the truth.

I get that some people prefer it not to be that way at all, but I personally do not think that it is a problem for me because you could see it as something that will crash and meanwhile I will accumulate from the bottom and make more money when it goes up. The best thing I learned during my crypto investment period is to ignore all the bear callers, it never helps anyone to listen to them.

Questat

hero member

Activity: 2954

Merit: 605

Quote from: Outhue on December 30, 2022, 04:41:57 AM

Be sure to understand how a Stable coin is designed before storing your assets using them, most stable coins have failed since last bear market season, from USDN to UST and USN, there are many more that I don't mentioned.

Well, honestly I don't trust stablecoins anymore. Though sometimes I use BUSD still I'd never see that it was safe to store them and consider them as investments as I learn from the Luna scam after all.

For any new projects that mentioned stablecoins, I simply ignore them. It is better to avoid from the centralized projects rather than having regrets later. At this time, we don't just think about how much we earn but it was more important to seek security. Mostly scam happens to new projects, why we should risk our money if we have another option to choose?

tvplus006

legendary

Activity: 2268

Merit: 1655

To the Moon

Quote from: jaberwock on January 02, 2023, 04:44:22 PM

...I never trusted anything that is centralized and we all know that most of them are centralized and that is why they suck. If that is the case then why wouldn't I pick btc? Maybe not stable but more secure and that's why it's definitely a great thing for me. I know for a fact that I have never lost a single satoshi, and been here for a long time, I am going to keep it that way.

The purpose of investing in bitcoin and stablecoin is very different. By buying a stablecoin, we aim to save our money, and by buying bitcoin we want to increase it. But it is precisely this desire to increase your deposit that can lead to its loss. One should not think that the value of BTC will eventually increase constantly, because the opposite may happen. One should not think that the value of BTC will eventually increase constantly, because the opposite may happen, since it is a cryptocurrency here, which means there are high risks.

jaberwock

legendary

Activity: 2660

Merit: 1074

Quote from: tvplus006 on January 02, 2023, 06:53:52 AM

Quote from: Outhue on December 30, 2022, 04:41:57 AM

...Centralised or Decentralised you can just make a pick from USDC , USDT, DAI or BUSD

The security of stablecoins is determined by our trust in the issuer and is based on value judgments. Therefore, your trust in the stablecoin may be erroneous and you should use the time-tested fiat dollar to save your money. Do not store your savings in stablecoins, convert them into fiat.

It is based on our trust to them, but also it is about the mistrust hackers have to them. If any hacker out there that thinks they could hack into anything in one of those stablecoins, they will do their best and maybe one day they will screw one of them, and another day another of them.

I never trusted anything that is centralized and we all know that most of them are centralized and that is why they suck. If that is the case then why wouldn't I pick btc? Maybe not stable but more secure and that's why it's definitely a great thing for me. I know for a fact that I have never lost a single satoshi, and been here for a long time, I am going to keep it that way.

tvplus006

legendary

Activity: 2268

Merit: 1655

To the Moon

Quote from: Outhue on December 30, 2022, 04:41:57 AM

...Centralised or Decentralised you can just make a pick from USDC , USDT, DAI or BUSD

The security of stablecoins is determined by our trust in the issuer and is based on value judgments. Therefore, your trust in the stablecoin may be erroneous and you should use the time-tested fiat dollar to save your money. Do not store your savings in stablecoins, convert them into fiat.

Xal0lex

staff

Activity: 2436

Merit: 2347

Quote from: Outhue on December 30, 2022, 04:41:57 AM

Be sure to understand how a Stable coin is designed before storing your assets using them, most stable coins have failed since last bear market season, from USDN to UST and USN, there are many more that I don't mentioned.

Some new projects will come as whatever they like, either DeFi or Smart contract and they will introduce new Stable coin, be careful, in fact I don't see any reason why you should keep your dollars using a new Stable coin when we have USDT, USDC, DAI and BUSD..

Centralised or Decentralised you can just make a pick from USDC , USDT, DAI or BUSD

Only algorithmic stablecoins failed, for the most part. None of the classic centralized stablecoins were affected. This is important to understand before stating that many steablecoins have failed. Although classic centralized stablcoins also had problems with de-peg, they still returned the dollar peg afterwards. That is, their de-peg is temporary, while algorithmic stablecoins are in de-peg most of the time.

Tigerheart3026

full member

Activity: 902

Merit: 112

Quote from: mich on January 01, 2023, 12:18:32 AM

Stable coins do concern me just a bit because we do not know if they will always be pegged to $1. I have a significant amount of trust in Tether but I am looking into stacking some of Cardano’s new Djed Stable coin in this January.
After a successful hard fork and updated fees of less then 50% I think there will be a good opportunity for this new decentralized finance stable coin to compete with more popular stable coins. But this one on The Ethereum blockchain.

i am using tether (usdt) just for i needed if you ask me about trust i don’t trust where billions of dollar worth ftt is collapsed in a few days, usdt is always high risk bcoz of it’s a centralized stable coin, also peoples have doubt their actual reserved. btw i think we can't move for short time or long time without using such stable coins.

tbct_mt2

hero member

Activity: 2366

Merit: 838

DGbet.fun - Crypto Sportsbook

Quote from: mich on January 01, 2023, 12:18:32 AM

Stable coins do concern me just a bit because we do not know if they will always be pegged to $1.

Stable coins are not safe especially algorithmic stable coins. Their algorithmic designs can kill their depegs too easily and quickly. Like Terra UST. Tron USD was saved by Justin Sun but its total marketcap was small in that crisis and till now. In future, if its marketcap is bigger, how Justin Sun personally can save its peg.

Quote

I have a significant amount of trust in Tether

If Enron can collapse, FTX can collapse, Tether can too. No official guide for auditing in crypto and without auditing they can cook their reports.

I used to believe in Tether USDT but after all collapses in 2022 of many big projects, I changed and want to store my assets in either Bitcoin or fiat but no longer in stable coins.

mich

legendary

Activity: 3122

Merit: 1032

#1 VIP Crypto Casino

Stable coins do concern me just a bit because we do not know if they will always be pegged to $1. I have a significant amount of trust in Tether but I am looking into stacking some of Cardano’s new Djed Stable coin in this January.
After a successful hard fork and updated fees of less then 50% I think there will be a good opportunity for this new decentralized finance stable coin to compete with more popular stable coins. But this one on The Ethereum blockchain.

cryptoaddictchie

legendary

Activity: 2100

Merit: 1321

Fully Regulated Crypto Casino

Theres a lot of stablecoin there but its quite scary to risk on some farming associated with it since they are the one who controls it. Also its reserve and value is quite questionable yet. We should just used the major one and avoid the others. If you dont want to suffered from being a victim of previous stablecoins that ruined or got dumped. Its supposedly to be stable right, but if the project cant make it like that then thats a red flag.

Jawhead999

legendary

Activity: 1708

Merit: 1187

DGbet.fun - Crypto Sportsbook

I agree with most people here there's nothing difference between old or new project because you can't predict when they want to scam their investors or manipulate the market (centralized stablecoin). If you think decentralized stablecoin e.g. DAI has some risk involved about this project, then the best option is just hold your local fiat, don't trade it for stablecoin. The price is same isn't? it's stick with real fiat 1:1, you could proceed to legal and your funds are insured.

Topic: Be careful with new projects that introduce new Stable coins (Read 295 times)