• BTC Dominance: %
XBT.Market
Advertisement
  • Home
  • Coins MarketCap
  • Crypto Exchanges
  • Crypto Calculator
  • Top Gainers and Loser
  • News
  • Contact Us
No Result
View All Result
XBT.Market
No Result
View All Result
Home Bitcoin

Pain ahead for algorithmic and non-cash backed stablecoins: IMF director

Jon Hartney by Jon Hartney
July 28, 2022
in Bitcoin, Blockchain, Business, Market
0
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

IMF Director Tobias Adrian believes uncollateralized and algorithmically-stabilized stablecoins pose too great a threat to holders and may experience further sell-offs.

The International Monetary Fund (IMF)’s director of capital markets believes there could be further failures of “coin offerings,” including algorithmic stablecoins amid the ongoing crypto winter.

In the interview with Yahoo Finance on July 27, Tobias Adrian, director of monetary and capital markets for the IMF stated that there could be further failures of some coin offerings, in particular algorithmic stablecoins:

Related articles

Bitcoin derivatives data shows room for BTC price to move higher this week

January 23, 2023

Bitcoin price consolidation opens the door for APE, MANA, AAVE and FIL to move higher

January 22, 2023

“We could see further selloffs, both in crypto assets and in risky asset markets, like equities… there could be further failures of some of the coin offerings — in particular, some of the algorithmic stablecoins that have been hit most hard, and there are others that could fail.”

The IMF director also noted on Wednesday that he saw  “some vulnerabilities” for certain fiat-backed stablecoins, referencing Tether, which he claims are not “backed one to one” with the United States dollar (USD).

Adrian also mentioned that stablecoins need a “global regulatory approach” to better protect investors. Adrian stated that while it would be difficult to assess whether each cryptocurrency constitutes a security or not, regulators should first focus on ensuring that crypto exchanges and wallet providers do their due diligence on coins before marketing them.

Terra USD (UST), now known as TerraClassicUSD is the most notable algorithmic stablecoin to have lost its price peg, which wiped out $40 billion in market value in May, and is currently priced at $0.04 USD.

Tron’s algorithmic stablecoin USDD also fell to as low as $0.91 in June, however it regained its price peg after $700 million of USDC was added to its reserves.

Deus Finance’s DEI stablecoin also collapsed in May and currently sits at $0.18.

Related: Algorithmic, fiat-backed or crypto-backed: What’s the best stablecoin type?

Earlier this month, the founder of Frax Finance, the company behind the FRAX stablecoin, Sam Kazemian told Cointelegraph that he believes purely algorithmic stablecoins “just don’t work.”

Instead, Kazemian stated that “decentralized on-chain stablecoins […] need to have [traditional] collateral”.

Read Entire Article
Tags: CointelegraphCryptocurrencyInvestmentMining Bitcoin
Share76Tweet47

Related Posts

Bitcoin derivatives data shows room for BTC price to move higher this week

by Jon Hartney
January 23, 2023
0

BTC options data suggest that the Bitcoin price rally still has legs, even with wider economic concerns growing and the

Bitcoin price consolidation opens the door for APE, MANA, AAVE and FIL to move higher

by Jon Hartney
January 22, 2023
0

BTC could take a break from its sharp rally and if BTC price bounces off underlying support, APE, MANA, AAVE...

Genesis bankruptcy case scheduled for first hearing

by Jon Hartney
January 22, 2023
0

The first hearing in Genesis Capital's bankruptcy case will be held on January 23, according to court filings

Terra lending protocol Mars to launch mainnet

by Jon Hartney
January 22, 2023
0

The Mars Hub will launch an independent Cosmos application chain and issue MARS to users who hold the token during...

Central African Republic eyes legal framework for crypto adoption

by Jon Hartney
January 22, 2023
0

A 15-member committee is tasked with working on a legal framework that will allow cryptocurrencies to operate in

Load More
  • Trending
  • Comments
  • Latest

Ethereum Classic gets ‘endorsement’ from Vitalik Buterin, but ETC price still risks 50% crash

July 27, 2022

Critique on Helium’s $6.5K monthly revenue causes a stir

July 28, 2022

All aboard! Elon Musk’s Vegas Loop now taking Dogecoin payments

July 7, 2022

Cardano Vasil hard fork hit with another delay for several weeks

July 29, 2022

All aboard! Elon Musk’s Vegas Loop now taking Dogecoin payments

0

Crypto owners banned from working on US Government crypto policies

0

Korean startup Uprise lost $20M shorting LUNC

0

Ethereum testnet Merge mostly successful — ‘Hiccups will not delay the Merge.’

0

Bitcoin derivatives data shows room for BTC price to move higher this week

January 23, 2023

Bitcoin price consolidation opens the door for APE, MANA, AAVE and FIL to move higher

January 22, 2023

Genesis bankruptcy case scheduled for first hearing

January 22, 2023

Terra lending protocol Mars to launch mainnet

January 22, 2023

XBT.Market

This website is an automated news feed powered by the Nebulome cloud system. The site is made possible by YYC TECH Consulting and Alberta Digital Mining Company. As a team with major crypto and bitcoin enthusiasm, we have curated major sources of news, trading and financial data to bring you, our viewer, an unbiased source of truth.

Recent Posts

  • Bitcoin derivatives data shows room for BTC price to move higher this week January 23, 2023
  • Bitcoin price consolidation opens the door for APE, MANA, AAVE and FIL to move higher January 22, 2023
  • Genesis bankruptcy case scheduled for first hearing January 22, 2023
  • Terra lending protocol Mars to launch mainnet January 22, 2023
  • Central African Republic eyes legal framework for crypto adoption January 22, 2023

News Categories

  • Bitcoin
  • Blockchain
  • Business
  • Market

Tags

bitcoinMagzine Cointelegraph Cryptocurrency insidebitcoins Investment Mining Bitcoin NewsBTC

Quicklinks

  • Home
  • Coins MarketCap
  • Crypto Exchanges
  • Crypto Calculator
  • Top Gainers and Loser
  • News
  • Contact Us

© 2022 Xbt.Market - Powered by YYC Tech Consulting & ADMCO.

No Result
View All Result
  • Home
  • Coins MarketCap
  • Crypto Exchanges
  • Crypto Calculator
  • Top Gainers and Loser
  • News
  • Contact Us

© 2022 Xbt.Market by Nebulome.

  • bitcoinBitcoin(BTC)$23,379.000.92%
  • ethereumEthereum(ETH)$1,614.950.82%
  • USDEXUSDEX(USDEX)$1.07-0.53%
  • tetherTether(USDT)$1.00-0.05%
  • usd-coinUSD Coin(USDC)$1.00-0.13%
  • binancecoinBNB(BNB)$309.940.43%
  • rippleXRP(XRP)$0.4154210.15%
  • Binance USDBinance USD(BUSD)$1.00-0.17%
  • cardanoCardano(ADA)$0.390852-1.17%
  • dogecoinDogecoin(DOGE)$0.0896851.49%
  • matic-networkPolygon(MATIC)$1.16-0.23%
  • OKBOKB(OKB)$39.649.15%
  • SolanaSolana(SOL)$24.52-0.91%
  • Lido Staked EtherLido Staked Ether(STETH)$1,609.050.62%
  • polkadotPolkadot(DOT)$6.52-1.35%
  • Shiba InuShiba Inu(SHIB)$0.0000121.56%
  • litecoinLitecoin(LTC)$96.238.30%
  • AvalancheAvalanche(AVAX)$20.71-1.14%
  • tronTRON(TRX)$0.0637460.24%
  • UniswapUniswap(UNI)$6.83-0.77%
  • daiDai(DAI)$1.00-0.17%
  • wrapped-bitcoinWrapped Bitcoin(WBTC)$23,341.000.83%
  • cosmosCosmos Hub(ATOM)$13.36-2.84%
  • ToncoinToncoin(TON)$2.53-1.53%
  • chainlinkChainlink(LINK)$7.40-1.21%
  • leo-tokenLEO Token(LEO)$3.95-0.30%
  • moneroMonero(XMR)$184.391.88%
  • ethereum-classicEthereum Classic(ETC)$22.712.80%
  • AptosAptos(APT)$18.16-4.34%
  • bitcoin-cashBitcoin Cash(BCH)$136.021.03%
  • Aerarium FiAerarium Fi(AERA)$7.14-13.09%
  • stellarStellar(XLM)$0.093696-0.08%
  • ApeCoinApeCoin(APE)$6.12-3.49%
  • QuantQuant(QNT)$151.56-0.78%
  • NEAR ProtocolNEAR Protocol(NEAR)$2.52-2.26%
  • CronosCronos(CRO)$0.082144-0.23%
  • filecoinFilecoin(FIL)$5.42-0.90%
  • Lido DAOLido DAO(LDO)$2.30-5.67%
  • algorandAlgorand(ALGO)$0.260090-1.57%
  • vechainVeChain(VET)$0.024561-1.32%
  • Internet ComputerInternet Computer(ICP)$6.131.20%
  • HederaHedera(HBAR)$0.068383-2.29%
  • Axie InfinityAxie Infinity(AXS)$11.59-2.17%
  • decentralandDecentraland(MANA)$0.70-1.31%
  • AaveAave(AAVE)$86.17-2.11%
  • eosEOS(EOS)$1.11-0.84%
  • The SandboxThe Sandbox(SAND)$0.75-3.27%
  • FantomFantom(FTM)$0.457066-3.88%
  • FlowFlow(FLOW)$1.08-2.55%
  • MultiversXMultiversX(EGLD)$44.80-1.14%
  • theta-tokenTheta Network(THETA)$1.09-1.55%
  • Terra Luna ClassicTerra Luna Classic(LUNC)$0.0001750.86%
  • tezosTezos(XTZ)$1.12-1.71%
  • FraxFrax(FRAX)$1.00-0.42%
  • true-usdTrueUSD(TUSD)$1.010.46%
  • paxos-standardPax Dollar(USDP)$1.00-0.36%
  • bitcoin-cash-svBitcoin SV(BSV)$44.12-0.29%
  • huobi-tokenHuobi(HT)$5.172.05%
  • The GraphThe Graph(GRT)$0.094304-1.93%
  • Frax ShareFrax Share(FXS)$11.07-1.24%
  • kucoin-sharesKuCoin(KCS)$8.173.34%
  • Curve DAOCurve DAO(CRV)$1.09-2.33%
  • havvenSynthetix Network(SNX)$2.50-1.64%
  • Rocket PoolRocket Pool(RPL)$39.33-0.41%
  • ChilizChiliz(CHZ)$0.139560-0.57%
  • eCasheCash(XEC)$0.000038-2.18%
  • Trust WalletTrust Wallet(TWT)$1.74-0.69%
  • USDDUSDD(USDD)$0.99-0.22%
  • BitTorrentBitTorrent(BTT)$0.000001-0.40%
  • PancakeSwapPancakeSwap(CAKE)$4.030.02%
  • KlaytnKlaytn(KLAY)$0.218284-0.86%
  • BitDAOBitDAO(BIT)$0.58-1.46%
  • iotaIOTA(MIOTA)$0.239924-1.95%
  • dashDash(DASH)$56.719.31%
  • GateGate(GT)$4.241.39%
  • zcashZcash(ZEC)$46.870.22%
  • makerMaker(MKR)$665.33-2.87%
  • cUSDCcUSDC(CUSDC)$0.0227460.16%
  • neoNEO(NEO)$8.40-0.07%
  • gemini-dollarGemini Dollar(GUSD)$1.00-0.16%
  • OKCOKC(OKT)$31.925.32%
  • THORChainTHORChain(RUNE)$1.87-1.22%
  • cDAIcDAI(CDAI)$0.022146-0.01%
  • BTSE TokenBTSE Token(BTSE)$3.39-1.56%
  • Mina ProtocolMina Protocol(MINA)$0.65-2.02%
  • Tokenize XchangeTokenize Xchange(TKX)$6.772.68%
  • ImmutableXImmutableX(IMX)$0.67-3.37%
  • WhiteBIT TokenWhiteBIT Token(WBT)$4.10-0.39%
  • RadixRadix(XRD)$0.05201915.58%
  • ArweaveArweave(AR)$10.34-0.65%
  • PAX GoldPAX Gold(PAXG)$1,923.21-0.22%
  • OsmosisOsmosis(OSMO)$0.98-2.21%
  • GMXGMX(GMX)$56.953.24%
  • OptimismOptimism(OP)$2.22-5.38%
  • zilliqaZilliqa(ZIL)$0.029749-2.42%
  • FlareFlare(FLR)$0.0433909.19%
  • nexoNEXO(NEXO)$0.85-0.28%
  • Tether GoldTether Gold(XAUT)$1,891.52-0.05%
  • cETHcETH(CETH)$31.91-0.93%
  • enjincoinEnjin Coin(ENJ)$0.457658-7.02%