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One of the senior analysts at Bloomberg, Mike McGlone while talking about algorithmic stablecoin, says that these are dependent on market growth and looks like these do not have any future.
In a recent interview, the crypto strategist and analyst, Mike McGlone asserts that one thing to learn with the crash of the Terra (LUNA) and it’s stablecoin TerraUSD (UST)’s is that it has taught the whole crypto community about the risk that algorithmic stablecoin comes with and also it has helped the market to get rid of the excess digital assets.
“One thing that’s notable here is [that] this is part of the ebbing tide of risk assets… When the tide goes out, you see who’s wearing clothes, and we found out algorithmic stablecoins that are based on a market that needs to go up weren’t the best idea…
It’s very unfortunate what happened to TerraUSD, but the bottom line is this is what we’ve been expecting and hoping for to get past this year. You need to purge the excesses of ‘20 and ‘21 in crypto.”
Mike Mcglone further claims that this kind of market crash will pave the way for the crypto community to once again shift their focus on financial industrial transformation by utilizing digital assets.
“I mean the Shiba Inus, the Dogecoins, the 19,000 [crypto assets] are just ridiculous. [We need] to get back to really building the foundation – what’s happening with the transformation of technology and markets through cryptos.”
Mike McGlone wraps the interview stating that though the Crypto market looks like it’s just done with the algorithmic stablecoins in the days to come, these stablecoins still have a chance to reclaim their position once they are done with fixing the underlying issues that are associated with them.