#特朗普比特币金库 Uncovering the Stablecoin Industry Chain, is this 'stability' still stable?

Uncovering the Stablecoin Industry Chain, is this 'stability' still stable?

Hey everyone, recently in the financial world, stablecoins have been trending, claiming to have low volatility and stable returns, but is it really that appealing? Today, let's take a deep dive into the stablecoin industry chain!

💎 What is a stablecoin?

In simple terms, a stablecoin is a type of cryptocurrency, with the main feature being that it is pegged to a fiat currency (like the US dollar) at a fixed ratio, usually 1:1, emphasizing value stability, unlike Bitcoin's fluctuating prices. For example, if you spend 1 dollar, you can buy 1 stablecoin, and when you want to use it, you can exchange it back for 1 dollar, theoretically maintaining a constant value.

📈 Upstream of the industry chain: The 'secret' of the issuers

The upstream of the stablecoin industry chain consists of the issuers. Take the famous USDT, issued by Tether, which claims that for every USDT issued, there is 1 dollar held in reserve in the bank. However, it has been continuously questioned for having insufficient reserves and poor transparency. Just think about it, if the issuer's reserves are inflated, what guarantees the value of the stablecoin? Once trust collapses, the price can plummet instantly.