tl;dr: We’re in the midst of a “stablecoin” boom. These fiat-pegged cryptos are an increasingly important source of liquidity for crypto exchanges around the world. While an over-reliance on unaudited or “black box” stablecoins could wreak havoc on the crypto financial system if not kept in check, the alarm bells may be over-rung. Bitfinex and its reliance on Tether, a supposedly fully-reserved, but opaque $2.1bn asset, doesn’t present as dire a systemic threat as MtGox’s decline and ultimate bankruptcy did five years ago.
Stablecoins & MtGox Echoes - Unqualified Opi…
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tl;dr: We’re in the midst of a “stablecoin” boom. These fiat-pegged cryptos are an increasingly important source of liquidity for crypto exchanges around the world. While an over-reliance on unaudited or “black box” stablecoins could wreak havoc on the crypto financial system if not kept in check, the alarm bells may be over-rung. Bitfinex and its reliance on Tether, a supposedly fully-reserved, but opaque $2.1bn asset, doesn’t present as dire a systemic threat as MtGox’s decline and ultimate bankruptcy did five years ago.
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