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How stable are Stablecoins during a market crash

Which is the safest Stablecoin?
  • Can we really trust the quality and accuracy of the collateral audits;
  • How liquid are the Stablecoins during periods of high redemption volumes;
  • With fresh memories of the Terra Luna UST Algorithmic Stablecoin collapse, where are the technical and smart contract issues in fiat backed Stablecoins;
  • If Fiat-backed Stablecoins are truly 1:1 liquid, is there a real risk of depegging?
  • There is an unlikely, but real, potential for exchanges to be blacklisted at request of law enforcement and political influence — how safe are customers’ assets on those exchanges; and
  • With tightening focus on KYC requirements by regulators, will investors be able to freely redeem Stablecoins for fiat.

‘Not your keys. Not your crypto.’


  1. Fiat-Collateralized Stablecoin
  2. Asset-Collateralized Stablecoin
  3. Basket of Cryptocurrency-Collateralized Stablecoin
  4. Algorithmic Stablecoins
Source: Coingecko 17 November 2022
  • Link to USDT audit report
  • Link to USDC audit report
  • Link to BUSD audit report
  • USDT collateral incorporates Secured Loans (9%) and Other Investments (4%) with unknown details on their maturity details or their underlying security. USDT also lists Corporate Bonds and Precious Metals (4.6%) in their audited reports.
  • The USDT audit shows only $39,678,465,980 (58.3%) in US Treasuries.
  • By comparison USDC and BUSD have 100% of their collateral with the US Treasury Department as Bonds and also strong Cash Deposits.



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