Idk how I did this I think it’s my autistic luck lmao. Anyways cryptocurrency is cool when u learn how to bet against it. Every algorthmic stablecoin is backed by their own cryptocurrency. When the stablecoin de pegs from mass sell pressure they must mint tons of the backing cryptocurrency to buy the stablecoin and re peg it to a dollar. I shorted Luna at65 dollars all the way down to 30. And I shorted waves which has usdn as the stablecoin. They both de pegged to 90 cents and at that point I went all in cause I knew it was all over and they would both enter a death spiral. If u guys want I can u show u lol. Also the mods of cryptocurrency banned me for making fun of how ust is a Ponzi scheme lmao
Can you explain how this works?
Okay so a stable coin has to always be worth 1 dollar. Most stablecoins are backed by something that has monetary value except tether lmao usually another crypto. An algorithmic stablecoin is one that mints it’s backed coin whenever it drops from a dollar and de pegs. When they sell too much and the marketcap of the stablecoin is greater than the mcap of the backed coin it enters a death spiral where the backed coin is minted millions of times to keep the peg and it drains both the stable and the original coin to 0