STABLE COINS : HOW STABLE ARE THEY ?
Interesting take on the potential for a Crypto Accident and a Whole Market Accident
SNIP
If USDC does not have the reserves it claims it has, it is effectively a Ponzi scheme. If USDC is a Ponzi scheme, Coinbase is fatally wounded. If Coinbase is fatally wounded, it could trigger a massive collapse of the entire crypto ecosystem. Doubt me? Walk through what an unraveling of Coinbase would look like. By listing on the Nasdaq, Coinbase serves as a potentially toxic sewer pipe connecting all the chicanery of cryptocurrencies to the traditional finance world. The blowback would be astronomical.
Retail investors across the world would lose untold billions of dollars. Regulators would be outraged. Panic would ensue. Many cryptocurrencies would go no bid. Unlike traditional stock exchanges, major crypto exchanges have no circuit breakers. The fall would make Wednesday’s event seem like a warmup act. The panic would bleed into the stock market, causing a major risk-off correction.
Fully’s Comment
This Crypto Thingy reminds me of the Vaccines.
One Great Big Giant Experiment with Unknown long term effects
https://www.zerohedge.com/news/2021-05-22/coinbases-usd-coin-anything-stable
Crypto is the vaccine While Gold is The Natural Immune System
How’s that ?
Crypto is the vaccine While Gold is The Natural Immune System. Excellent analogy. You nailed it FGC.