Stablecoins Are Not All the Same — A Risk Primer

Treat ‘stable’ as a claim to verify, not a guarantee. Ask three questions: what backs it, who audits that backing and how often, and can you actually redeem at par in size. Fully-reserved, regularly-attested fiat stablecoins sit at one end; algorithmic designs that lean on reflexive demand sit at the other, and we have watched several of those go to zero.