#StablecoinLaw Stablecoin Low: Why doesn't the stablecoin stay stable! 🪙📉
Stablecoins are designed to maintain their value and peg it to a stable asset like the US dollar, but sometimes we see something called "Stablecoin Low" – and this happens when the currency loses its peg and decreases in value.
📌 Reasons for the decline may include:
Loss of trust in the issuer
Weak or absent reserves
Market pressures or negative news
Hacks or technical issues
A famous example: the UST coin from Terra, which completely went out of control in 2022.
⚠️ The lesson here? Even "stable" currencies can be unstable! That's why it's important to choose currencies backed by real reserves, with strong transparency, and to continuously monitor their performance.
What do you think? Are there really stable currencies we can rely on 100%? Share your opinion with us 👇