Deutsche Bank Research analysts recently published a paper examining the history of stablecoins introduced since 1800. The study found that the majority of pegged coins did not succeed, with only 14% managing to survive. Tether disputed the analysts’ findings, arguing that the researchers did not provide solid data to validate their claims.
The research highlighted that stablecoins, which are digital currencies tied to assets such as fiat currency or gold, play a crucial role in stabilizing the volatile cryptocurrency market. The analysts investigated approximately 334 pegged currencies launched over the years and noted that only a small percentage of them are still in operation. They emphasized that successful stablecoins typically exhibit traits like credibility, reserve support, and strict oversight systems.
According to the study, almost half, or 49% of stablecoins, have ceased to exist due to various reasons. The analysts expressed concern about the future of stablecoins, suggesting that while some may thrive, many are likely to face challenges and ultimately fail.
