Only 14% of Stablecoins Survive, Says Deutsche Bank Research Report
- Deutsche Bank Research analysts recently released a paper on stablecoins launched since 1800.
- The analysts conclude that most pegged coins failed, with only 14% surviving.
- Tether criticizes the researchers, claiming they failed to produce concrete data to support their arguments.
In a recent study, Deutsche Bank Research analysts concluded that most stablecoins failed, with only 14% surviving. Raising concerns regarding the future of stablecoins, the researchers posited, “Some may survive, although most will likely fail.”
Stablecoins are digital currencies pegged to another asset like fiat currency, gold, etc. As these types of currencies are stable, most investors depend on them in the highly volatile crypto market.
The analysts surveyed nearly 334 pegged currencies launched since 1800. They asserted that only a very few currently exist among the total stablecoins. They added that the successful stablecoins boasted three features that the failed stablecoins lacked: credibility, reserve backing, and tightly controlled systems.
As per the research, 49% of the stablecoins failed, existing …
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