According to Reeve Collins, co-founder of Tether, the collapse of the UST could mean the end of algorithmic stablecoins.
Tether co-founder Collins spoke about the IHR at the World Economic Forum in Davos, Switzerland. Collins said that the UST debacle was the “likely end” of algorithmic stablecoins, and such a collapse was not surprising:
Previously, many market commentators shared their views on the possible collapse of the IHR. Similarly, Jeremy Allaire, CEO of Circle, the issuer of USD Coin (USDC), the second-largest stablecoin on the market, said UST has a high-risk frame for a stablecoin.
Ethereum co-founder Vitalik Buterin disagrees with Collins. According to him, stablecoins are not inherently flawed.