Stablecoins: When “Stable” Isn’t Always So Stable

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Stablecoins: When “Stable” Isn’t Always So Stable

Stablecoins sound like the chill cousins of crypto—digital money that doesn’t swing wildly like Bitcoin after too much coffee. In theory, they’re pegged to something solid, like the U.S. dollar, so one coin equals one buck. Easy, right? Well… not exactly.

Over the past few years, we’ve watched some of the biggest names in stablecoins wobble, stumble, and straight-up collapse. Remember TerraUSD’s death spiral? Or TITAN evaporating to basically zero overnight? Even Facebook’s shiny “Diem” couldn’t escape regulatory doom. Turns out, promising “price stability” in crypto is a little harder than it looks.

So, what went wrong?

  • Algorithms gone wild
  • Collateral chaos
  • Regulators vs. Reality

But here’s the twist: while the failures were dramatic (and sometimes meme-worthy), stablecoins are still powering trillions in payments, cross-border transfers, and DeFi trades. Stripe even plugged USDC into their systems because it’s fast and global.

We’ve prepared a report on stablecoins—their promise, their failures, and what comes next. Check out the attached PDF for the full dive.