What is the point of "stable"-coins ?
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Let's pretend I create a company in which I promote a token, let's call it XUSD which is a "stable"-coin. I set up a Blockchain (which no one will care to verify as far as no one does with any token) and all the corresponding technicalities. Now, I go out to the market to sell my XUSD. I invest in marketing and promotion, I pay influencers and social media posts to boost my token. XUSD Gets listed on exchanges and people start trading it.
Because this is not a charity, I gave myself a huge amount of XUSD. At some point the greed gets into me and I print more XUSD and just dump all of it for real USD. Classic crypto scheme. I run away, you get the XUSD.
As a Bitcoin maximalist myself, why do I have to trust someone with this kind of leverage ?
Satoshi's genius is that precisely we don't need to trust greedy corruptible humans, but just the cryptography and game theory behind Bitcoin.
Having setted up this context. What is the point of stable -coins? you have to trust Tether or [company-name] with your hard earned money. How is this not the same as a Bank but even more corruptible.
Just trying to understand. Thanks in advance
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