Source: Cointelegraph Original: "{title}"
Sonic Labs has canceled its plan to launch a dollar-pegged algorithmic stablecoin and is instead developing an alternative priced in UAE Dirhams.
On March 22, Sonic Labs co-founder Andre Cronje stated that the company was working on a dollar-pegged algorithmic stablecoin with an annual percentage rate (APR) of up to 23%, according to Cointelegraph. However, a week later, the company changed direction.
“We will no longer release a dollar-based algorithmic stablecoin,” Cronje said in a post on X on March 28. “Completely unrelated to this, we will release a mathematically bound digital Dirham, which is settled and priced in dollars, and is absolutely not a dollar-based algorithmic stablecoin.”
This strategic shift occurred after the UAE announced it would launch its digital Dirham central bank digital currency (CBDC) in the fourth quarter of 2025.
Source: Andre Cronje
Khaled Mohamed Balama, Governor of the Central Bank of the UAE, stated that the blockchain-based Dirham could enhance financial stability and help combat financial crime. According to the Khaleej Times, the digital currency will be accepted across all payment channels alongside its physical currency.
Sonic Labs' change in strategy stems from widespread criticism, as the company's original plan to launch an algorithmic stablecoin had raised significant concerns in the crypto industry since the collapse of the Terra ecosystem in 2022.
Cronje himself had previously acknowledged that he developed post-traumatic stress disorder (PTSD) regarding algorithmic stablecoins due to past experiences: “I’m pretty sure our team has cracked algorithmic stablecoins today, but because the previous cycles gave me too much PTSD, I’m not sure if I should implement it.”
In May 2022, the $40 billion Terra ecosystem collapsed, wiping out billions of dollars in value in just a few days. Terra's algorithmic stablecoin, TerraUSD (UST), had offered over 20% annual percentage yield (APY) on the Anchor protocol before the collapse.
As UST lost its peg to the dollar, dropping to about $0.30, Terraform Labs co-founder Do Kwon shared his rescue plan on X (then Twitter). Meanwhile, the value of the sister token LUNA—once a top ten cryptocurrency by market cap—plummeted over 98%, falling to $0.84. LUNA traded above $120 in early April 2022.
The collapse of algorithmic stablecoin issuers sent shockwaves among crypto investors and lawmakers.
To mitigate systemic risk, the EU's Markets in Crypto-Assets (MiCA) legislation will prohibit algorithmic stablecoins to avoid failures similar to Terra.
Meanwhile, stablecoins are increasingly being used for smaller everyday payments rather than large transfers, according to David Pakman, managing partner at CoinFund.
Pakman stated during Cointelegraph's Chainreaction live show on March 27, 2023: “We have seen a significant decrease in the size of each stablecoin transaction, indicating that they are being used more for payments rather than large transfers.”
Related: Experts: The U.S. needs to establish stablecoin rules before cryptocurrency tax reform
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
