Moody’s Developing Rating System for Stablecoins

Silberman

legendary

Activity: 2492

Merit: 1332

Quote from: Tytanowy Janusz on January 27, 2023, 02:19:57 PM

Quote from: ChillyMatthew on January 27, 2023, 12:47:06 PM

Could this move rekindle interest in stablecoins?

There is a good move about how market works and how rating compaies did not worned us before GFC in 2008. In "Big Short" there is a memorable scene about how a person from an auditing company explains that he have to give A rating , in another case his client will go to another rating company to get it. The only difference is that someone else will earn for the service.

They are not comming here to help us. They came here because they see a product they can earn on which is "bribe for a good rating". Can't wait for 2030 huge crypto collapse after A+ rating stable coin going bust.

A very direct explanation of what is really happening here, look at any review sites on any field and you will find the same happening, even if at the beginning the reviews are given according to the metrics which were established, eventually this process gets derailed and it simply becomes a process in which money is charged to get a good grade, a process which we have already witnessed on this market when review websites graded icos, and as you may guess many of those icos with high ratings scammed their investors.

Tytanowy Janusz

legendary

Activity: 2156

Merit: 1622

Quote from: ChillyMatthew on January 27, 2023, 12:47:06 PM

Could this move rekindle interest in stablecoins?

There is a good move about how market works and how rating compaies did not worned us before GFC in 2008. In "Big Short" there is a memorable scene about how a person from an auditing company explains that he have to give A rating , in another case his client will go to another rating company to get it. The only difference is that someone else will earn for the service.

They are not comming here to help us. They came here because they see a product they can earn on which is "bribe for a good rating". Can't wait for 2030 huge crypto collapse after A+ rating stable coin going bust.

ChillyMatthew

newbie

Activity: 29

Merit: 1

GM crypto fam.

As I was doing my usual Friday market recap, I came across this interesting story about Moody's working on developing a rating system for stablecoins.

So apparently, Moody's is working on a stablecoin rating system that will grade stablecoins depending on the quality of the reserve attestations.

As a stablecoin supporter, I really like this idea because it feels like this is the missing piece. But with Terra's collapse and everything that's been going around in the crypto space lately, it seems like many people have lost their confidence in stablecoins.

I'd like to get your input on this, as you're probably more experienced than I am.

Could this move rekindle interest in stablecoins?

Source:

https://app.getresponse.com/view.html?x=a62b&m=BJSRD2&mc=9M&s=BtgXWnG&u=QcLhh&z=ECi4GHI&

Topic: Moody’s Developing Rating System for Stablecoins (Read 42 times)