How to Make Money With Stablecoins
Even in the current downturn, there are a plethora of opportunities in the crypto market for investors to continue generating income. Stablecoins are one asset that can provide substantial returns when utilized correctly. However, they are not all the same. Some stablecoins offer less risk than others.
In the last month, stablecoins have found themselves in the spotlight for all the wrong reasons. One, in particular, has proved that even stablecoins are subject to some degree of risk. The TerraUSD (CRYPTO: UST) stablecoin recently lost its peg to $1. Unlike other stablecoins that hold a reserve of cash equivalents equal to the amount of stablecoins distributed, UST maintained its peg through a crypto-trading algorithm instead. It was an experimental strategy that ultimately proved that it could fail when markets became volatile. As a result, UST currently trades at only $0.02. This stablecoin lost nearly all of its value and purpose.
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Source Fool.com
