This Billionaire Warned Against Algorithmic Stablecoins in 2021, What's Next?
Criticism Clouded Algorithmic Stablecoins Questions were raised in the past over a lack of collateral that supported the supply of stablecoins. advertisement In September 2021, billionaire investor Mark Cuban expressed doubts over the stability of algorithmic stablecoins. He felt stablecoins would be the first to get regulated citing the variance in the definition by product. “What is an algorithmic stablecoin ? Is it stable? Do buyers understand what the risks are? It needs standards.” He made the comments in the backdrop of losing money in IRON token, which is partially backed by collateral like BUSD, USDT and partially backed algorithmically. FRAX, another algorithmic stablecoin which is designed to adjust its collateral levels as per demand for its own currency, is also partially collateralised. What Are Algorithmic Stablecoins? The World’s first licensed Crypto Casino. Begin your jo...