Stablecoins use false rapid payments to provide a seemingly low-risk channel for gambling games that speculate on cryptocurrencies, while also giving stablecoin issuing companies a legitimate opportunity for fundraising and personal profit.
Stablecoins are a typical scam that uses false payments for marketing. To pay with stablecoins, one must first use bank payments to buy stablecoins. Both buyers and sellers need stablecoin accounts or wallets. The actual money was transferred to the stablecoin bank account using bank SWIFT payments when purchasing stablecoins. Real stablecoin transactions occur in the stablecoin company's bank account, and both parties use the stablecoin company's wallet, so the actual purchase is just the fluctuation of wallet numbers. The actual funds remain in the stablecoin company's bank account. This back-end system of fluctuations can use ordinary files, databases, or blockchains. What feels like instant arrival is just numbers; the actual money hasn't moved at all until withdrawal time when the stablecoin company uses SWIFT to transfer the funds from the stablecoin account to your bank account. Among them, stablecoin payments (not including the purchase of stablecoins or stablecoin withdrawals) are false payments. The purpose of hyping up the speed of stablecoins is to raise funds for the stablecoin company. As long as users do not withdraw large amounts, the stablecoin company can do as it pleases with the funds.
If purchasing stablecoins via OTC, stablecoins need to maintain a 1:1 relationship with actual funds, which means the corresponding funds have long been in the stablecoin company's account. The seller receives cash, and the buyer receives a digital asset in their wallet; the actual money hasn't moved, only the numbers in the wallet fluctuate.
As for using stablecoins to purchase cryptocurrencies, in fact, the stablecoins are still in the stablecoin company’s bank account; it’s just the fluctuations of the numbers in the two wallets (the stablecoin wallet and the cryptocurrency wallet) of the trading parties. The actual money is still with the stablecoin company.
As long as there are no large withdrawals, stablecoin companies can invest the raised funds, including earning interest from reserve banks, using other people's money for banking operations without bearing the financial industry obligations that banks must take on. It's quite enjoyable.
Adding a group of people who pretend to understand but actually don't, the situation looks very promising.
