Why Algorithmic Stablecoins Keep Losing While Asset-Backed Ones Win
Stablecoins were supposed to be the boring part of crypto. Something steady you could park money in while everything else swung around. What we learned instead is that not all stability is real. Over the last few years, the market has made a clear decision. Stablecoins backed by actual assets survive. Stablecoins held together by algorithms and faith eventually don’t.
An algorithmic or artificial peg sounds smart on paper. Code adjusts supply. Incentives balance demand. Everything stays near one dollar as long as the system behaves. The problem is that markets don’t care about elegant math. When stress hits, everyone runs for the exit at the same time. Algorithms can’t create real liquidity when confidence breaks. They just rearrange losses faster.
We’ve already seen how this movie ends. Once a peg slips, the feedback loop turns vicious. People redeem, supply balloons, price drops further, and the mechanism designed to stabilize the system becomes the thing accelerating its collapse. No amount of clever design fixes the core flaw. There is nothing tangible underneath to stop the bleeding.
That’s why the market has slowly but decisively chosen asset-backed stablecoins. Whether it’s cash, short-term Treasuries, or other verifiable reserves, real backing matters. When panic shows up, holders want to know there is something on the other side of the trade. Not a promise. Not an equation. An asset that can actually be sold.
I say this as someone who likes HBD on the Hive blockchain. I’ve supported it. I’ve used it. I understand the design philosophy behind it. But I also have to be honest. HBD is still an algorithmic peg, and it is swimming against the current trend. The peg has held largely because the system is small and stress has been limited. Size can protect you for a while. It does not change the underlying risk.
As markets mature, tolerance for experimental stability goes down. Capital gets more conservative, not less. Institutions, funds, and even regular users increasingly prefer boring and verifiable over clever and theoretical. That shift is not ideological. It is learned behavior from watching pegs break in real time.
This doesn’t mean every algorithmic stablecoin collapses tomorrow. It does mean the odds are stacked against them long term. Survival depends on constant confidence, controlled growth, and favorable conditions. That is not how markets usually behave. They eventually test everything.
The hard truth is that the stablecoin race is already being decided. Backing beats belief. Reserves beat rules. HBD may continue to exist, especially within its niche, but the broader market has spoken. Stability without assets is temporary. Stability with real backing is what the market actually trusts.
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STOPPlease read 👇🏾👇🏾👇🏾👇🏾👇🏾👇🏾👇🏾👇🏾👇🏾👇🏾👇🏾👇🏾
Have fun downvoting the truth 😂😂😂😂😂
Just understand how stupid you are making Hive look 😂😂😂
Do you really think people can't see 🙈😂😜
People are not blind 😔
Sorry to tell you 😂😂😂
😂😂
Hive is dying due to no one is buying Hive bad downvoters and whale's farming Hive hard 😂😂😂😂😂😂
Data is beautiful data is king 👑
🙄🙄🙄🙄🙄🙄🙄🚨🚨🚨🚨🚨🚨🚨🚨
Please read and share 🙏🏾
To the downvoting racist old and young farmers You are a scammer a thief a criminal who is working for other criminals
⭕⭕⭕⭕⭕⭕👀
Hello everyone I hope you are all good and well today in this post is some of the evidence to prove my case
If you didn't know I've been getting downvoted for a long time on Hive
They have been trying to bully me with downvotes and words but it doesn't affect me I've been online for over 25 years
So I've dealt with people like this before it's nothing new
But what they are doing is bad Very badi joined steemit like everyone else thinking it offers freedom but I must say steemit offered much more freedom than Hive does
Everyone already knows I only post my own original content I have no need to steal anything from anyone
I've been labelled a lot of things on Hive 😂 by the biggest farmers scammers and downvoters
Actions speak louder than any words do especially when them words are coming from a compolsive liars
I will keep updating this post when I get time
https://hive.blog/hive/@ureka.stats/the-untrending-report-hive-downvote-analysis-16-09-2025-20250916181314
https://hive.blog/hivedev/@makerhacks/please-peakd-allow-me-to-completely-block-spammers-would-you-ever-vote-for-this
https://hive.blog/hive-167547/@dlmmqb/re-kgakakillerg-t34wy6
https://hive.blog/hive-170475/@acidyo/re-kgakakillerg-t32sw1
https://hive.blog/hive-167922/@themarkymark/re-kgakakillerg-t30ziu
https://hive.blog/hive/@ureka.stats/the-untrending-report-hive-downvote-analysis-29-09-2025-20250929172045
No downvotes for this racist person 🧐
https://hive.blog/hive-196387/@acidyo/re-kgakakillerg-t41yr6
https://hive.blog/dvs/@dhedge/re-kgakakillerg-t3clz3
https://hive.blog/hive-150329/@kgakakillerg/t3a8fu
https://hive.blog/musical/@steevc/re-kgakakillerg-t2kz1m
@crimsonclad please do your job 🙏🏾
https://hive.blog/hive-135178/@crimsonclad/re-kgakakillerg-sxllhv
https://hive.blog/hive-148441/@hivewatchers/svftu9
https://hive.blog/hive-148441/@hivewatchers/svdjjz
https://hive.blog/hive-176853/@steevc/re-kgakakillerg-syyy4x
https://hive.blog/dev/@howo/re-kgakakillerg-szhax7
https://hive.blog/hive/@steevc/follow-friday-respect
https://hive.blog/hive-127022/@shmoogleosukami/re-kgakakillerg-t0hcxc
It's unbelievable that they downvoted this Goodbye Auntie R.I.P 🙏🏾
Comments being downvoted by blocktrades https://hive.blog/hive-170744/@kgakakillerg/t0ns3b
https://hive.blog/hive-127466/@steevc/re-blocktrades-t0kint
https://hive.blog/hive-127466/@blocktrades/t0lq41
https://hive.blog/hive/@ureka.stats/the-untrending-report-hive-downvote-analysis-2025-06-29-20250629143829
https://hive.blog/hive-127466/@kgakakillerg/t0m1vn
https://hive.blog/hive-108278/@kgakakillerg/t0rfo8
https://hive.blog/hive-127466/@kgakakillerg/t0vcl7
Stop farming Hive https://hive.blog/burnpost/@buildawhale/re-1756307402814502169-20250827t151240z
😂😂😂😂😂
📊 The Untrending Report - Hive Downvote Analysis - 2025-09-07
RE: Understanding Pointers in C Programming
Please Peakd, allow me to completely block spammers (Would you ever vote for this?) thanks for exposing yourself more @makerhacks
Please go through it all instead of calling it spam 😂😂😂😂🤣🤣🤣🤣🤣🤣🤣
https://blurt.blog/hive/@candy49/5slvnx-taskmaster4450-is-being-downvoted-on-hive-by-you-know-who
🚨🚨🚨🚨🚨🚨🚨🙄🙄🙄🙄🚨🚨🚨🚨
https://hive.blog/hive-178138/@thefed/t6q9kb 🙄🙄🙄🙄🙄🙄🙄🚨🚨🚨🚨🚨🚨🚨🚨🙄🙄🙄🙄🙄
https://hive.blog/music/@geneeverett33/11-25-25-three-tune-tuesday-picking-tunes-from-the-punk-band-the-descendents-1982-1997-era
🚨🚨🚨🙄🙄🙄🙄🙄🙄🙄🚨🚨🚨🚨🚨
https://hive.blog/dmania/@steemcleaners/ps46kb
https://hive.blog/hive-124838/@fjworld/re-peaksnaps-t7161i
🚨🚨🚨🚨🙄🙄🙄🙄🙄🙄🙄🙄🙄🚨🚨🚨🚨
https://blurt.blog/blurt-131902/@condividisulweb/3w94e8-hive-manipulation-censorship-and-suspicious-funds-the-hidden-truth
🚨🚨🚨🚨🙄🙄🙄🙄🚨🚨🚨
https://hive.blog/hive/@kgakakillerg/i-ve-been-put-on-two-blacklists
When the downvotes stop 🛑 and my rep is back I stop sharing the truth 🙏🏾
You can call the truth spam as much as you like
If want to speak to me in private send me a message on Instagram @kgakakillerg
Please read 👇🏾👇🏾👇🏾👇🏾👇🏾👇🏾👇🏾👇🏾👇🏾👇🏾👇🏾👇🏾
Have fun downvoting the truth 😂😂😂😂😂
Just understand how stupid you are making Hive look 😂😂😂
Do you really think people can't see 🙈😂😜
People are not blind 😔
Sorry to tell you 😂😂😂
😂😂
Hive is dying due to no one is buying Hive bad downvoters and whale's farming Hive hard 😂😂😂😂😂😂
Data is beautiful data is king 👑
🙄🙄🙄🙄🙄🙄🙄🚨🚨🚨🚨🚨🚨🚨🚨
Please read and share 🙏🏾
To the downvoting racist old and young farmers You are a scammer a thief a criminal who is working for other criminals
⭕⭕⭕⭕⭕⭕👀
Hello everyone I hope you are all good and well today in this post is some of the evidence to prove my case
If you didn't know I've been getting downvoted for a long time on Hive
They have been trying to bully me with downvotes and words but it doesn't affect me I've been online for over 25 years
So I've dealt with people like this before it's nothing new
But what they are doing is bad Very badi joined steemit like everyone else thinking it offers freedom but I must say steemit offered much more freedom than Hive does
Everyone already knows I only post my own original content I have no need to steal anything from anyone
I've been labelled a lot of things on Hive 😂 by the biggest farmers scammers and downvoters
Actions speak louder than any words do especially when them words are coming from a compolsive liars
I will keep updating this post when I get time
https://hive.blog/hive/@ureka.stats/the-untrending-report-hive-downvote-analysis-16-09-2025-20250916181314
https://hive.blog/hivedev/@makerhacks/please-peakd-allow-me-to-completely-block-spammers-would-you-ever-vote-for-this
https://hive.blog/hive-167547/@dlmmqb/re-kgakakillerg-t34wy6
https://hive.blog/hive-170475/@acidyo/re-kgakakillerg-t32sw1
https://hive.blog/hive-167922/@themarkymark/re-kgakakillerg-t30ziu
https://hive.blog/hive/@ureka.stats/the-untrending-report-hive-downvote-analysis-29-09-2025-20250929172045
No downvotes for this racist person 🧐
https://hive.blog/hive-196387/@acidyo/re-kgakakillerg-t41yr6
https://hive.blog/dvs/@dhedge/re-kgakakillerg-t3clz3
https://hive.blog/hive-150329/@kgakakillerg/t3a8fu
https://hive.blog/musical/@steevc/re-kgakakillerg-t2kz1m
@crimsonclad please do your job 🙏🏾
https://hive.blog/hive-135178/@crimsonclad/re-kgakakillerg-sxllhv
https://hive.blog/hive-148441/@hivewatchers/svftu9
https://hive.blog/hive-148441/@hivewatchers/svdjjz
https://hive.blog/hive-176853/@steevc/re-kgakakillerg-syyy4x
https://hive.blog/dev/@howo/re-kgakakillerg-szhax7
https://hive.blog/hive/@steevc/follow-friday-respect
https://hive.blog/hive-127022/@shmoogleosukami/re-kgakakillerg-t0hcxc
It's unbelievable that they downvoted this Goodbye Auntie R.I.P 🙏🏾
Comments being downvoted by blocktrades https://hive.blog/hive-170744/@kgakakillerg/t0ns3b
https://hive.blog/hive-127466/@steevc/re-blocktrades-t0kint
https://hive.blog/hive-127466/@blocktrades/t0lq41
https://hive.blog/hive/@ureka.stats/the-untrending-report-hive-downvote-analysis-2025-06-29-20250629143829
https://hive.blog/hive-127466/@kgakakillerg/t0m1vn
https://hive.blog/hive-108278/@kgakakillerg/t0rfo8
https://hive.blog/hive-127466/@kgakakillerg/t0vcl7
Stop farming Hive https://hive.blog/burnpost/@buildawhale/re-1756307402814502169-20250827t151240z
😂😂😂😂😂
📊 The Untrending Report - Hive Downvote Analysis - 2025-09-07
RE: Understanding Pointers in C Programming
Please Peakd, allow me to completely block spammers (Would you ever vote for this?) thanks for exposing yourself more @makerhacks
Please go through it all instead of calling it spam 😂😂😂😂🤣🤣🤣🤣🤣🤣🤣
https://blurt.blog/hive/@candy49/5slvnx-taskmaster4450-is-being-downvoted-on-hive-by-you-know-who
🚨🚨🚨🚨🚨🚨🚨🙄🙄🙄🙄🚨🚨🚨🚨
https://hive.blog/hive-178138/@thefed/t6q9kb 🙄🙄🙄🙄🙄🙄🙄🚨🚨🚨🚨🚨🚨🚨🚨🙄🙄🙄🙄🙄
https://hive.blog/music/@geneeverett33/11-25-25-three-tune-tuesday-picking-tunes-from-the-punk-band-the-descendents-1982-1997-era
🚨🚨🚨🙄🙄🙄🙄🙄🙄🙄🚨🚨🚨🚨🚨
https://hive.blog/dmania/@steemcleaners/ps46kb
https://hive.blog/hive-124838/@fjworld/re-peaksnaps-t7161i
🚨🚨🚨🚨🙄🙄🙄🙄🙄🙄🙄🙄🙄🚨🚨🚨🚨
https://blurt.blog/blurt-131902/@condividisulweb/3w94e8-hive-manipulation-censorship-and-suspicious-funds-the-hidden-truth
🚨🚨🚨🚨🙄🙄🙄🙄🚨🚨🚨
https://hive.blog/hive/@kgakakillerg/i-ve-been-put-on-two-blacklists
When the downvotes stop 🛑 and my rep is back I stop sharing the truth 🙏🏾
You can call the truth spam as much as you like
If want to speak to me in private send me a message on Instagram @kgakakillerg
The wins for Stablecoins backed by actual assets over Stablecoins backed by algorithmic are clear from history. Failures like Luna teach us the value of verifiable reserves over clever math alone 🔥
This is true! But the HBD cultists refuse to acknowledge this. I'm team Hive but the wild & ridiculousness I hear even funded devs & top witnesses say about how HBD will be the main stable coin in future is just a joke. HBD is only still pegged because of how small it is. We as a community should be discussing how to wind HBD down with the least damage done but instead people choose fantasy and ridiculous predictions. !PIZZA !LADY
$PIZZA slices delivered:
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LOHtokens.@geneeverett, you successfully shared 0.1000 LOH with @thefed and you earned 0.1000 LOH as tips. (3/6 calls)
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