2026-01-15 19:21:34

Stablecoin de-pegging has never been accidental; there is an underlying logic that cannot be escaped.

Having been in the industry for 8 years, I have seen too many instances of stablecoins failing. From LUNA's wipeout overnight, to USDC dropping below 0.87 due to the Silicon Valley Bank turmoil, and most recently the plunge to USD1, each time it's the same story in different versions.

The key question is: what exactly does the "stability" of stablecoins rely on? Many people mistakenly think it's a matter of code or assets, but the core has always been market confidence. Whether using fiat reserves or algorithmic adjustments, once trust collapses, all technical measures are rendered useless.

The recent decline of USD1 is essentially a liquidity run. When a large number of users sell off simultaneously, market makers simply disappear, order book depth shrinks sharply, and prices plummet—this is very similar to the flash crash of USDe in October 2025.

A more realistic point is that no one can provide unconditional support. Once an algorithmic stablecoin falls into a death spiral, it’s beyond rescue; centralized stablecoins can also fail due to reserve liquidity issues. Market makers become extremely reluctant to act in extreme conditions, leaving retail investors to bear all the risks.

This is the true face of stablecoins—when confidence is fragile, all promises are just numbers on paper.

LUNA-3.31%

USDC0.05%

USD10.01%

USDE-0.01%

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SignatureDenied

· 4h ago

Another round of the de-anchoring script... Market makers running away, tired of this routine.

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ChainPoet

· 4h ago

Confidence games, no one can escape. Market makers run really fast. --- Here we go again, always talking about stability, always de-pegging. I just want to know who still dares to believe. --- Eight years of ups and downs summed up like this? When confidence collapses, everything is pointless. How many times have I said this? --- Basically, it's a game of hot potato; the last one to take over is always retail investors. --- As soon as liquidity runs dry, market makers disappear. This design is inherently toxic. --- Algorithmic stablecoins, centralized stablecoins, they are essentially the same—without someone to defend the peg, it's doomed. --- Just numbers on paper, the irony is spot on, but I've seen through it long ago. --- When USDC dropped below 0.87, I thought stablecoins were finished. But what happened? They just keep surviving. --- The term "death spiral" is well used; if there's no hope, there's no hope. --- Risk is all pushed onto retail investors, market makers take nothing, this is the real Web3.

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ForkInTheRoad

· 4h ago

Once confidence collapses, all techniques are useless; market makers run faster than anyone else --- Another round? Retail investors are still holding the bag --- So stablecoins are just a confidence game, betting that others will run later than you --- Eight years of experience sounds good, but still gets cut like everyone else --- Market defense? Laughable, in extreme conditions everyone is a fleeing soldier --- When liquidity tightens, true colors show, it's really funny --- That wave of LUNA was truly incredible; zeroing out is the most stable ending --- Having reserves means safety? Nonsense, if trust is gone, nothing is useful --- The term "death spiral" is well used; once triggered, no one can save it --- The key is still those market makers, they run extremely fast in extreme situations --- I’ve learned my lesson; in the future, to bet on stablecoins, I’ll have to bet on confidence not collapsing --- Seeing so many people still buying after all this time, it’s truly a faith recharge

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LiquidationWizard

· 4h ago

Another de-pegging, it's really a damn cycle The moment the market maker runs away, you know it's over; retail investors are always the last to take the fall Confidence is something no one can guarantee To put it simply, stablecoins are just a game of hot potato I've long stopped touching this stuff, it's too damn frustrating

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LuckyBlindCat

· 5h ago

Basically, market makers are just the role of taking the money and running, throwing all the risk onto us retail investors. Trust is something that, once broken, can never be glued back together. Stablecoins are worthless; in critical moments, they all plummet sharply. It's another wave of being exploited, for sure. This logic is indeed inescapable; I've seen through it long ago.

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