10 Stablecoins that Could Face a Major Hit if the US Bill Passes

These 10 stablecoins are predicted to implode as soon as the US Stablecoin Bill passes

After the dramatic fall of the TerraUSD stablecoin, the global crypto market experienced a drastic implosion. Traditionally, investors believed that investing in stablecoins would mean investing in robust, yet profitable digital assets. But the digital asset community became increasingly skeptical about investing in any cryptocurrency after the fall of one of the largest stablecoins in the market. The fall of TerraUSD has triggered an extended investigation on Do Kwon and all the other co-founders of that ecosystem. Eventually, even the United States Government is preparing to ban stablecoin bypassing the US Stablecoin Bill. Experts speculate that if this bill passes, then the stablecoin price fall is bound to happen, it might also cause the entire crypto ecosystem to get disrupted. So, investors from all over the world are looking for the top 10 stablecoins that are most volatile and are bound to implode as soon as this bill. Here, we have enlisted the top 10 stablecoins that might destabilize in the future, given the US stablecoin bill is accepted.

 TerraClassicUSD

 TerraClassicUSD is basically TerrsUSD 2.0. The Terra founder, Do Kwon, basically launched this crypto after the UST token imploded and caused the disruption of the entire stablecoin and crypto ecosystem. Now, government officials and the investment community are quite skeptical about investing in any services that are offered by the Terra banner, besides, Do Kwon is facing several criminal charges that are directly being linked with the Terra ecosystem and its investors certainly do not want to be directly implicated with it.

Tether

 Tether is one of the largest stablecoins in the market, which is bound to face disruptions after the US Stablecoin Bill is passed. The value of Tether got destabilized after the Terra stablecoin fell, which shows that even the largest stablecoin in the crypto market is not beyond volatility and might face sudden drops.

 USDC

 USDC is the second-largest stablecoin in the market, whose price movements were quite similar to that of Tether and the other stable digital assets when Terra imploded. It is quite evident that being the second-largest stablecoin in the market, its price decline is bound to happen.

DAI

 Dai is basically an Ethereum-based stablecoin whose price is softly pegged to the US dollar and is collateralized by several other cryptocurrencies that are deposited into smart contract vaults every time a new Dai is minted. If the US Stablecoin Bill is passed, experts believe a stablecoin like Dai will surely be affected. It has always been determined among the top 10 stablecoins in the market, but banning stablecoins is bound to affect a major asset like Dai.

 Magic Internet Money

 Since TerraUSD's fiasco started because it was an algorithmic stablecoin, the regulations will mostly focus on regulating and banning algorithmic stablecoins. These stablecoins generally have weak architectures and possess no collaterals, which means that the stability of their pegged value is extremely unstable. Algorithmic stablecoins are as volatile as cryptocurrencies, but since they are all tagged as stablecoins, these assets tend to attract as many investors as general stablecoins do.

 Frax

 Frax Protocol is another algorithmic stablecoin that might take a plunge after the US Stablecoin Bill is passed. Frax is basically an open-source, permissionless, and entirely on-chain which is currently implemented on Ethereum. The end goal of the Frax protocol is to provide highly scalable, decentralized, algorithmic money in place of fixed-supply digital assets like BTC. But it is yet another stablecoin that is highly volatile in terms of maintaining its value.

 Pax Dollar

 Basically, the stablecoin aims to maintain a 1:1 parity with the US dollar. It was initially created as an answer to the Tether printing controversy. Quite recently, the Paxos company renamed its stablecoin to USDP. The Pax Dollar coin has been among the top digital assets in the market, yet it might continue to face backlashes right after the launch of the dreaded US stablecoin bill.

 TrueUSD

 TrueUSD is 100% backed by the US dollar and is one of the most liquid stablecoins in the market. It is mostly popular due to its low transaction fees and higher interest rates on stored balances. Since stablecoins will be completely banned from the United States, it is still unclear as to what would happen to all these US-dollar-backed stablecoins.

 MAI

 MAI is one of those algorithmic stablecoins that are harder to obtain and are only found on the Coinbase app and Coinbase wallet. Yet again, its algorithmic nature might get it into trouble with the investment community.

 USDD

USDD is a crypto that is issued by the TRON DAO Reserve with a stable price and diverse use cases. It has a built-in incentive mechanism and a responsive monetary policy, which will allow USDD to self-stabilize against price fluctuations, and help maintain the value of USDD as a true settlement currency. The coin's value is speculated to plummet just like the rest of the stablecoins in the market.