Stablecoins currently occupy a prominent place in the crypto market. However, a recent study, based on the turbulence experienced by some of them, demonstrates the risks they pose to the crypto industry.
The crypto market threatened by the lack of transparency of centralized stablecoins
The crypto research company Kaiko published a report on stablecoins on Thursday, July 13. He indicates that the latter would have become essential in the crypto industry to the point of making it dependent. In particular, centralized stablecoins.
Kaiko shows in particular that these reign supreme on the market. Evidenced by the figures for their recent performance. As of Thursday alone, crypto transactions handled by exchanges involved 74% stablecoins.
Stablecoins are therefore showing a certain dynamism. Still, Kaiko is ringing the bell about the integrity of the crypto market with the activity of some unknown stablecoins. Concerns, in connection with the lack of transparency that characterizes them, precisely with regard to their liquidity reserve.
Kaiko particularly points the finger at TrueUSD (TUSD). It is a stablecoin pegged to the dollar, but which has the particularity of experiencing a bullish movement. In just three months, the volume of transactions linked to TUSD has increased from 1% to 19%.
The situation is all the more worrying as Techteryx, the firm behind this stablecoin is experiencing difficulties. They are essentially linked to the loss of its banking partner Prime Trust. This, while doubts exist as to the effectiveness of the reservations it claims to have. How to explain the growth in the volume of transactions involving the TUSD? Kaiko thinks that the opacity maintained by the stakeholders could be the source.
“The relatively unknown TUSD poses the greatest risk today, offering the least information about its reserves or corporate structure,” alerts the crypto data provider.
Clara Medalie, head of research at Kaiko, also recalled the implications of this lack of transparency. It is the basis of the jolts that the crypto industry has suffered in recent months. This was the case with the USDC following the sinking of the Silicon Valley Bank (SVB).
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