It wasn't all that long ago that stable coins where not a thing. In fact only Tether was around for the longest time and when doing so it came under some serious heat. After all of this time we still don't really have any clear answers about the number one stable coin called Tether which currently has a market cap of 62 Billion. Over 112 Billion dollars is currently locked up in crypto in stable coins which is nearly 10% of the crypto market cap. *If you don't know what a stable coin is it's a coin the should always hold and represent $1 USD

The Tether Story

You know me I'm not into FUD so don't take this article as a FUD article but instead something to be watchful of and how we need to actually work AWAY from stable coins instead of producing more.

Tether has had a very shaky past in fact the audit that was suppose to take place and then be taken place monthly never happened and still hasn't happened! Instead what happened was the company that was meant to audit the books of tether cut ties and left. (they are not obligated to say why they left but normally when that happens they see something on the books they don't like and break ties with the company so they aren't held responsible for it)

Since then we now now that only 5% of Tether is backed with cash while the rest is in short term corporate debts and commercial paper.

Banks and StableCoins

You can honestly think of Tether as a bank now when you look at where the funds are and being generated from. With only 5% in cash reserves it's pretty much exactly like a bank which only needs to hold about 3% cash reserves on hand. That means if enough people went in to cash out cash banks wouldn't have enough money to go out and it's what happened during the great depression. While yes there are now factors in place for banks to not have this happen again it doesn't mean it couldn't happen again.

However on the crypto front of things there are no regulations or backups. If enough people tried to cash out their tether there simply isn't enough liquid funds on hand to pay out everyone. Most of it is locked up. This in theory could start to show us that these stable coins over time could be setting us up for what could be a repeat of the great depression however instead of it being one country it would actually be world wide.

To me it's not that far fetched of an idea that it could happen if enough funds continued to be injected into stable coins over crypto currencies.

Stable Coins Moving Forward

Moving forward there will most likely be a higher demand to print and produce more stable coins. We have already seen a drastic increase from where stable coins where just a year ago at

It's important to understand Tether is NOT a back by $1 USD! Most of these "stable" coins are not backed by $1 USD which could seriously get us into major trouble in the future. This is my callout for DOWN WITH STABLECOINS unless they are truly backed by a 1:1 ratio and proof is shown.

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