Seeing the Terra blow-up, and thinking about the lack of interest in asset-backed digital currencies among main-stream crypto investors convinced me to write [THIS]( today.
TL/DR: if you want to step out of the market for a bit while things settle down, and you don’t want to sit in cash (inflation) or a stablecoin that might not handle a big down-draw, then why not move to something backed by real, tangible assets until it’s time to dip your toes back in the water?
The argument makes a ton of sense to me, but I came to crypto from being a long-time gold and silver stacker, and it took an asset-backed token to get me to really start to learn about crypto.
Do y’all see things the same – basically that there’s a role for tokens that are low volatility that are tied to real things other than currencies? If not, what am I missing from the mainstream crypto-investor’s perspective?
or hear me out, stable coins backed by stable coins
Engineer here! I’m about to bring out a stablecoin that is pegged to an open bag of frozen peas in my freezer! It’s called USPP! Supply limited to 2568!
You can invest in PAXG. I’m sticking with stacking my bag. I’m all in on one good projects lol.
Stablecoins backed by rare comic books in mint condition. What could go wrong?!
I saw Tether’s web site says “100% backed and fully transparent”, and some guy from the Cayman Islands signed off on an attestation, so *of course* you can let your life savings sit in USDT and have peace of mind. Not one of those “algorithmic stablecoins” so nothing to worry about there!
If you are at this point just buy real gold instead of tokenized gold.
I Invest in stable coins that are backed 1:1 to USD and that’s it
Paxos backed by gold is a good one.
Usdc or Busd ?
Like potatoes.
Everyone loves to eat potatoes. It’s one of the most versatile food item out there. It single-handed brought down a nation and permanently changed the nation’s demographic, political, and cultural landscape.
I think it’s about time it got its due.
I am off to grow some potatoes. Who’s with me?
What real assets? What is real?
It all involves trust and the only thing that creates trust is the blockchain.
I would rather have keys to coins on the blockchain than a paper that says “you own 1 oz of gold”.
Some of the bigger exchange stable coins do this. I trust GUSD a bit more than some of the others.
Makes sense; put the stable back into stable coin.
Crypto totally acts like a risk on asset which by definition is useless in this current climate. I don’t trust any of the fiat stable coins like Tether because I want to be able to trade out even when everyone is headed for the exits seeking dollars. Liken it to a bank run…or a stable coin run.
I like the guard rails of holding allocated gold to support a stable coin; more difficult to fractionalize and place holders at risk by shady management. Also like the yield that Kinesis provides as well!
https://youtu.be/qYbG0-FtMrE
$AABB is backed by gold
MakerDAO (DAI) is currently onboarding real world assets as collateral.
1. How do you know the exchange the coin is native to will be honest about having all the backing assets.
2. How will that guarantee price stabilization as like stocks, crypto price is determined by buying and selling pressure? Actual valuation doesn’t always come into play.