Thoughts on Crypto Stablecoins

Crypto stablecoins are cryptocurrencies that attempt to peg their market value to some external reference (like the US dollar).

There are 3 main risks with crypto stablecoins:

• Fraud risk: It’s said that each stablecoin is backed by a hard currency but there’s a chance that isn’t true
• Censorship risk: If your stablecoins are held by a third-party, the government or company could freeze your assets
• Blowup risk: If the underlying asset goes to zero, so will your stablecoin