I think this was bound to happen as what we have witnessed over the few days has been the total opposite of stable. We all know if you build your project on sand then you are looking at a disaster at some point. What Terra had with LUNA and UST was a Ponzi scheme that created a massive sell off affecting not only their investors, but everyone in crypto. We have all taken a back foot with our wallet values and this was all fueled by greed and nothing else. When you are dealing with billions of dollars you cannot be gambling as many have found out the hard way.
For crypto to be taken seriously I am afraid we will have to see some type of regulation taking place. How many other projects are out there with their "stable coins" set up like a house of cards ready to tumble? I haven't looked into the ins and out's of what Tron is doing, but put nothing past Mr Sun. He somehow always appears when things are happening and we all know what type of character he is. My understanding is there is no difference between UST and USDD and this is crazy stuff for those who are gambling as they are not helping the crypto cause in any shape or form.
The one thing that we can be certain of is stable coins are needed and having reliable decentralised ones at that. HBD is sitting comfortable even though it has nowhere near the numbers required, but it will play it's part somehow. We actually must be grateful for this failure happening now as one could only imagine the carnage if LUNA was at $1000.
DJED the stable coin issued by COTI for Cardano DeFi was launched into testnet over a week ago and the timing could not be more welcome. The COTI team have taken their time to make sure they get things right and they know what regulation will be required as they are an official bank on the inside. They have been working with the bodies that make the decisions and have the inside scoop so they know what is going to be required and are ahead of everyone else.
We often complain with the "WEN" this or "WEN" that but getting it right is the part that matters. Whatever regulation that comes into the stable coins I expect DJED will not be affected in any way. Cardano were not stupid when they partnered with the COTI team as they knew exactly what type of service they were buying into.
What they have come up with is a total different concept that may seem like over kill but at least they have the safety features built in to maintain stability. A security blanket using a reserve coin with a safety net of between 4 and 8 x the required value for stability. Minting and burning will not just happen like UST and will only happen when required and if reserves are in place. This is a safety blanket that others don't have and why in June when the mainnet goes live it will be a success.
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What if the whole Terra disaster was orchestrated?
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The problem was it could be orchestrated meaning there is a serious weakness in the "stablecoin" meaning they have problems. Anything that can be ripped off it's peg like that has no right to be called a stable coin.
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True. It's all part of the maturation process.
No real surprise in view of that sandcastle disaster! HBD is ticking along nicely and as for the boy Sun well the less we hear of him the better!
Can't say am surprised. Just hope HBD keeps growing under the radar cause I don't think we need any unnecessary attention
I fully agree with that as I don't think we are ready and we don't need to be in the spot light for a stable coin. Hive is better than that and needs to be seen for what it is.
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I was expecting this... what a mess
Here comes the SEC what a f***ing surprise
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The regulation was to be expected but it still kind of sucks. After all, we all know how the SEC and Feds will take regulation along and it will be a huge mess. Will we even get an answer to something like whether or not Tether is fully backed by dollars?
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I think it’s a manufactured problem-reaction-solution scenario. Used it as a useful idiot to drive for crazy regulation.
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Looking forward to regulations coming to HBD.
They can send the letter to...
Um...
Oh, just "send it out there".
I'm sure that will be okay.
Right?
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