Stablecoins should 'be held to same standards': Ardoino
Beyond outlining how the stablecoin's backing had changed, Ardoino also highlighted how the ecosystem should move forward amid the recent collapse of Terra's UST stablecoin.
"In my opinion, what we would like to see is clear guidance on the type of disclosures that we need to have," he said. "Everyone points at us and says 'OK guys, you have to give everything to the public.' Fine, that is a fair request from the community. At the same time, that would need to be true for everyone. Everyone needs to be held to the same standards."
Ardoino went on to say that Tether is no longer "the only big stablecoin" on the market, hinting at the swift growth of its nearest competing stablecoin in Circle's.
Both USDC and USDT stand in stark contrast to decentralized and algorithmic stablecoins, which back their stablecoins either fully by other cryptocurrencies or via self-executing .
MakerDAO'sis an example of an overcollateralized algorithmic stablecoin, whereas Terra's UST is an example of an algorithmic stablecoin without any backing other than several lines of code.
UST has, however, collapsed this past week, hitting a low of $0.15. Tether also lost its peg, dropping as low as $0.95; it has since recovered though and is trading at $0.99.