Stablecoins


Markets

Bailout Fund, Backstop or Bouncy Ball? Here's How LFG's Bitcoin 'Reserve' Might Work

Developers of the fast-growing UST stablecoin say the coin's $1 value peg isn't "backed" by anything – just a blockchain-based algorithm. So why does it need a multibillion-dollar bitcoin reserve in case of an emergency? How would that work?

TerraForm Labs founder and CEO Do Kwon (CoinDesk TV, modified by CoinDesk)

Opinion

‘Built to Fail’? Why TerraUSD’s Growth Is Giving Finance Experts Nightmares

The Terra/Luna blockchain is growing at a blinding pace. At its heart, according to some critics, is a ticking time bomb.

A bank run in progress at New York City's American Union Bank on April 26, 1932. A run on an algorithmic stablecoin would similarly leave some depositors empty-handed. (Wikimedia)

Layer 2

The Risks Behind LUNA-UST Stablecoin, According to a Bearish Academic

The Terra ecosystem's breakout success may be "unsustainable," University of Calgary law professor Ryan Clements said on CoinDesk TV's “First Mover.”

LUNA-UST Stablecoin Shows Risks of Destabilization, Law Professor Says (Ganapathy Kumar/Unsplash)

Videos

LUNA Surges 17% as UST Becomes the Third Largest Stablecoin

TerraForm Lab’s UST has become the third-largest stablecoin, meanwhile there’s a 17% spike in the LUNA governance token’s price. “The Hash” group discusses the race to capture the stablecoin market, comments made by Tether’s Paolo Ardoino and the differences between asset-backed and algorithmic stablecoins.

CoinDesk placeholder image

Videos

What Are the Risks of Algorithmic Stablecoins?

Finance professionals are becoming increasingly skeptical of algorithmic stablecoins as they surge in popularity. “The Hash” group discusses the systemic risk of these unbacked assets, referencing failed projects like Iron Finance.

CoinDesk placeholder image

Policy

UK Crypto Industry Hopes for More Clarity From Planned Stablecoin Rules

A new regulatory package for crypto could clear up some gray areas for digital asset companies around which regulations they should comply with.

(Paul Mansfield photography/Getty Images)

Markets

Tether's Paolo Ardoino on UST: 'It's All Fun and Games' Until You're a $100B Coin

The algorithmic stablecoin's growth has surpassed its larger rivals.

Tether CTO Paolo Ardoino at Paris Blockchain Week on April 14, 2022. (Twitter/Bitfinex, modified by CoinDesk)

Videos

Amazon Isn’t Interested in Crypto Payments, Exploring NFTs Instead

Amazon CEO Andy Jassy recently stated that the e-commerce giant does not have plans for cryptocurrency payment integration but is considering adding non-fungible tokens (NFTs) to its retail business. “The Hash” panel discusses the vitality of crypto for everyday payments, considering transactions fees and price fluctuations while noting the possible use cases for stablecoins. 

Recent Videos

Videos

Inflation Concerns Hit Investors, BTC Holds Below $40K

Crypto Finance AG Head of Trading Mike Schwitalla shares his insights on the current state of the crypto markets as bitcoin’s price once again trades below $40K. Schwitalla discusses reasons for cryptocurrency sell-offs, inflation weighing on investor sentiment, and options trading. Plus, a conversation about stablecoin projects like Tether and Luna.

CoinDesk placeholder image