SBNY - Unstable Stablecoins: The Cryptocurrency Paradox
2023-03-14 05:30:00 ET
Stablecoins are digital currencies designed to maintain a stable value against a reference asset, such as the U.S. dollar. However, a rash of bank liquidations in and around the crypto market is shaking up these supposed models of safety and stability.
Can those supposed paragons of digital steadiness be trusted in the long run? Let's think about that.
The sudden liquidations of Silvergate Capital (NYSE: SI) , Silicon Valley Bank (NASDAQ: SIVB) , and Signature Bank (NASDAQ: SBNY) sent immediate ripples through the cryptocurrency market. Dollar-based stablecoins are taking this crisis on the chin, drifting far away from their intended price of $1 per token.
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Unstable Stablecoins: The Cryptocurrency Paradox