💀In 2022, Terra, an algorithmic stablecoin project, collapsed, losing $60 billion. Founder Do Kwon faces fraud charges after being extradited to the US.
Stablecoins like USDT and USDC are key in crypto but come with single points of failure. Decentralized coins like Dai are backed by crypto assets, but they don't always hold the $1
Algorithmic stablecoins are decentralized but not 1:1 backed. No one has created a reliable one yet, and it may remain the mythical "Philosopher’s Stone" of crypto.