Stable Coin Safe Harbor: recent events have shaken our trust in the safety of stablecoins

Definition: Safe Harbor:

• the place ships go to stay safe from storms at sea. Captains move their ships there to preserve their ships and preserve the fish they already caught.

• Ironically that is the same thing crytocurrency traders do with their investing gains during times of volatility. They move into cryptocurrency stablecoins to preserve their ships, as in capitol, and their catch of fish, as in profits.

• But recent events have shaken cryptocurrency investors faith in the concept of safe harbor in stablecoins.

• Yes, the recent huge loss of 41? billion dollars in the UST-Luna meltdown shakes our current belief system to the bone by questioning a fundemental belief: that stablecoins are a safe place to park your money.

• Multiple content creators here have written about the Terra Luna collapse, so there is no need to rehash it, but we should also note that over 7 billion USDT redemptions have also occurred.

• This high rate of redemptions from USDT, a dollar backed stablecoin, which is also the oldest and largest stablecoin in the cryptocurrency world. Suggests fear, uncertainty, and a loss of confidence in the class of tokens, which formerly had the full confidence of cryptocurrency investors.

• This collapse of UST and the high rate of redemptions of USDT tokens for dollars is ironic considering that stablecoins traditionally are the place you cash out your volatile crytocurrency tokens to, to protect your profits from volatility.

• They are where you go, to protect your gains and preserve your capitol.

• The question I have at this point is where do we go from here?

Whwre do we go for safe harbor?

• If we can't trust our stablecoins, what can we trust?
• We know all other cryptocurrencies are volatile
• We know all other cryptocurrencies are not places we can go to protect our profits and preserve our capitol.

Fiat?? LOL! :)

• And it appears that for some investors the answer is U.S. Dollars.
• How ironic right?
• The very vehicle, whose inflationary loss of value single handily birthed the need for the original cryptocurrency Bitcoin, has become the vehicle cryptocurrncy investors flee to, to protect their profits and preserve their capitol.
• Tell me it isn't so Joe?
• Life is full of surprises and amazing twists of fate is it?

Irony is real

• Personally, I love it.
• Fact is always stranger then Fiction, and this is just another of Life's examples of that Truth.

Question...

• So I ask this question: Have recent events shaken your trust in the Safe Harbor provided by Stable Coins?

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• If Yes, where do you plan to put your Capitol?
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• If No, what stable coin will you now use to weather the storms?
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• Where will you seek safe harbor?

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Hive account@shortsegments

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Stable Coin Safe Harbor: recent events have shaken our trust in the safety of stablecoins