Tether Co-Founder Believes TerraUSD’s Collapse Could Be the End of Algorithmic Stablecoins
TerraUSD’s crash transpired an unprecedented level of scrutiny on DeFi’s financial mechanisms and inevitably brought the feasibility of algorithmic stablecoins into question. Co-founder of BLOCKv and the popular stablecoin Tether said that UST’s debacle is “probably be the end” of so-called algorithmic stablecoins.
At the World Economic Forum in Davos, Switzerland, Collins told CNBC that the collapse of Terra’s stablecoin isn’t surprising. He went on to add that algorithmic stablecoins are unlikely to survive. Terra’s fall from grace led to many speculating about the death of other stablecoins, but these notions are overblown. The big ones, such as USD Coin (USDC) and Tether (USDT), haven’t been immune to criticism either but have been around long enough to be widely used and trusted.
Source
@CryptoWorldAnalysis
