RE: USDD Failing And What It Will Take For Stablecoin Success

Good breakdown of the issue with stablecoins in their current state! I was extremely skeptical of UST when I first learned about it early last year. I was an early investor in the LUNA token (sub-$3) but sold to buy BTC instead (good choice in hindsight overall).

When I saw the price of the LUNA token balloon exponentially in a short period of time, it looked like a bubble to me, even without doing a deep-dive into the tokenomics like I've been doing more of this year.

I just read @khaleelkazi's piece on USDD and watched Coffeezilla's video on YouTube. To me, this appears to be a classic case of same ole crap different project.

On one hand, we definitely need stable medium-of-exchange between cryptocurrencies and fiat currencies, but on the other hand, we cannot allow any singular entity (let alone a single person) to maintain majority control. Since Justin has printed over 90% of all USDD that are possible (something like 723M total when he's done printing, I think), there's no way that USDD should even be classified as a "stablecoin" in any sense of the word.

From where I'm standing, USDD looks like just another insider exit scam, where Justin can swap his worthless TRON tokens out for USDD, without crashing the market, furthering harming his bags he's been holding. This seems like a get-rich-quick scheme with his supposed promise of an "extremely-low risk asset" (I call bull). Nothing yielding 40% should ever be considered low-risk, let alone EXTREMELY-low risk.

It all comes across as a really shoddily-put-together marketing scam to try and capitalize off the desperation and fear that has permeated the crypto markets since UST/LUNA's implosion.

Posted Using LeoFinance ^Beta