USDT. USDC. DAI. BUSD.
They're all called stablecoins. They all claim to be worth $1. But they are NOT the same thing and reason why not knowing the difference has cost people real money. 🛑
Here's the quick breakdown:
💵 USDT
@tether
Launched in 2014, the pioneer stablecoin. Runs on multiple blockchains, offers unmatched liquidity, and is widely adopted. Pegged 1:1 to USD, backed by reserves.
💵 USDC
@USDC
Issued by
@circle is the world’s largest regulated stablecoin. Redeemable 1:1 for USD, and widely adopted across 30 blockchains, exchanges, and payment networks, it’s trusted by institutions for transparency and compliance.
💵 DAI
@SkyEcosystem
The decentralized stablecoin. Soft‑pegged to USD, backed by crypto collateral in Sky Protocol Vaults. No company controls it and its governance is community‑driven. Transparent, flexible, but complex mechanisms carry unique risks.
⚠️ UST
@terra_money
Launched by Terraform Labs, UST was an algorithmic stablecoin tied to LUNA. It relied on burn/mint mechanics for stability. In 2022, the system collapsed, wiping billions out. Proof that “stable” doesn’t always mean safe.
The lesson: understand what's backing your stablecoin before you trust it with your money.