Stablecoins Plagued by Security Issues and Trust Concerns, Reveals New Report
The National Institute of Standards and Technology (NIST), an agency under the United States Department of Commerce, has conducted a study exploring the technology and security concerns surrounding stablecoin. The non-regulatory agency studied the top 20 stablecoins by market cap over the past year and discovered.
According to the agency, these stablecoins are USDT, USDC, BUSD, DAI, and FRAX. The agency highlighted that the five are pegged to the US dollar and they had a mean maximum value of $0.9934 and a minimum value of $0.9871. The report also considered other issues, such as security and risks associated with them. It identified possible issues like collateral theft, exploitation of underlying blockchain, data oracles compromise, smart contract bugs, and arbitrary or unauthorized minting.
