Hidden dangers lurk in the economy that most haven't noticed yet. Take stablecoins—they're sitting there like a dormant volcano, and when they blow, the financial system could experience something we haven't felt since 2008.
Think about it: stablecoins underpin massive DeFi activity and settlement flows across the ecosystem. But their stability mechanisms? Often fragile. A sudden loss of confidence, a liquidity crunch, or a collateral crisis could cascade through markets faster than anyone realizes.
The destruction wouldn't stay confined to crypto. If a major stablecoin collapses, it could trigger panic across interconnected financial markets. Asset prices crater. Counterparty risks explode. Regular finance gets pulled into the whirlpool.
We've seen this movie before. 2008 taught us how hidden systemic risks can detonate the entire financial structure. Stablecoins carry that same potential—the difference is, this time the fuse is shorter and the damage radius is global.
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AlwaysMissingTops
· 01-08 15:06
Damn, stablecoins are really a ticking time bomb... It seems most people don't even realize the risk
Volcano theory is a bit scary, but it’s not without reason. If DeFi liquidity pools get drained... sigh
Wait, is this more intense than 2008? A global explosion? Then I need to reconsider my positions
Honestly, who can guarantee that the collateral for USDT and USDC is completely transparent? I’m a bit panicked
Here comes the "history repeating" argument again, but this time it seems really different...
If stablecoins collapse, both spot and derivatives will explode together, there's no escaping it
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WhaleSurfer
· 01-07 10:12
Still spreading alarmist rumors? I'm tired of hearing about stablecoin collapses. If it was going to blow up, it would have already.
This time is different. Once systemic risk loosens, there's no turning back, even Wall Street will be collateral damage.
Honestly, I'm a bit worried. The collateral ratios for USDC and USDT haven't been fully disclosed.
NGL, that's why I keep half in cash and half in crypto. Any day now, a black swan could suddenly appear.
It's well written, but it feels like more FUD hype. Every month, someone is bearish.
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BlockTalk
· 01-05 18:35
Stablecoins, to put it simply, are a psychological game. Eventually, they will collapse.
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Haven't learned enough from the 2008 lessons? Now it's happening again, and this time on a larger scale.
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Honestly, DeFi is built on quicksand. One stablecoin blow-up and it's all over.
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Everyone is betting it won't collapse, but who knows... I believe in the volcano theory.
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Don't talk about guarantee mechanisms; those are as fragile as paper.
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Once confidence shatters, the liquidity crisis can quickly spread to traditional finance, and there's no stopping it.
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Systemic risk is right there; everyone just pretends not to see it.
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Thinking of Luna... the safety assumptions of stablecoins are inherently ridiculously fragile.
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Has anyone really calculated what happens if collateral values shrink... probably no one wants to go that deep.
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AirdropAnxiety
· 01-05 18:33
Damn... Are we really the only ones panicking about stablecoins? Why are others so calm?
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MetaverseHermit
· 01-05 18:25
Stablecoins will eventually collapse; it just depends on who gets the last baton...
Really, DeFi is now just a game of hot potato, everyone knows but pretends not to see...
It's been so long since 2008, do we have to go through it again? Can't learn, huh...
NGL, this time might be worse than last time, global interconnectedness is all linked up, one explosion takes everyone down...
Where is the promised risk management? Turns out it's just a paper tiger...
Wait, did those institutions really conduct stress tests? Or am I too naive...
Systemic risk has been packaged so beautifully this time, no one dares to say anything...
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ConfusedWhale
· 01-05 18:18
Stablecoins should have been regulated a long time ago; they are truly a ticking time bomb.
Hidden dangers lurk in the economy that most haven't noticed yet. Take stablecoins—they're sitting there like a dormant volcano, and when they blow, the financial system could experience something we haven't felt since 2008.
Think about it: stablecoins underpin massive DeFi activity and settlement flows across the ecosystem. But their stability mechanisms? Often fragile. A sudden loss of confidence, a liquidity crunch, or a collateral crisis could cascade through markets faster than anyone realizes.
The destruction wouldn't stay confined to crypto. If a major stablecoin collapses, it could trigger panic across interconnected financial markets. Asset prices crater. Counterparty risks explode. Regular finance gets pulled into the whirlpool.
We've seen this movie before. 2008 taught us how hidden systemic risks can detonate the entire financial structure. Stablecoins carry that same potential—the difference is, this time the fuse is shorter and the damage radius is global.