#BigTechStablecoin Stablecoins offer stability in the volatile crypto market, but they’re not without risks. Fiat-backed stablecoins like USDT face scrutiny over reserve transparency—do issuers hold enough assets to back every coin? Algorithmic stablecoins, like Terra’s UST, can collapse if their mechanisms fail, as seen in 2022. Regulatory uncertainty also looms, with governments eyeing stricter oversight to prevent systemic risks. Additionally, stablecoins are vulnerable to hacks or smart contract failures in DeFi platforms. Users must research issuers’ credibility and reserve audits to mitigate risks. Despite these challenges, stablecoins remain vital for crypto adoption, balancing innovation with the need for trust and security.