Bitcoin

Reeve Collins says that UST collapse will bring an end to most algorithmic stablecoins

Terra’s UST stabilitycoin crashed a few months ago. Experts say this could spell trouble for other algorithmic stabilizecoins. The Terra blockchain crashed a few weeks back, resulting in billions of dollars being lost. UST was the stablecoin in the Terra ecosystem. It lost its peg with the US Dollar, which resulted in the market being…

Terra’s UST stabilitycoin crashed a few months ago. Experts say this could spell trouble for other algorithmic stabilizecoins.

The Terra blockchain crashed a few weeks back, resulting in billions of dollars being lost.

UST was the stablecoin in the Terra ecosystem. It lost its peg with the US Dollar, which resulted in the market being wiped-out of billions of dollars.

Unlike other stablecoins like USDT or USDC that are tied to the US Dollar, UST can be viewed as an algorithmic stablecoin. The algorithm that governs the UST is called an algorithm.

Reeve Collins is the co-founder and co-founders of BLOCKv, as well as another stablecoin tether. He told CNBC that he believes that UST’s collapse would likely bring an end to most algorithmic stablecoins.

He mentioned this during an interview with CNBC at the World Economic Forum in Davos. Collins stated that

“It’s unfortunate that the money … was lost, however, it’s not a surprise. It is an algorithmic-backed stablecoin. It’s just a group of smart people trying out different ways to convert something to the dollar. Many people took out their savings in the last few weeks because it wasn’t financially sustainable. The crash had a cascading effect. And it will probably be the end of most algo stablecoins.”

Collins wasn’t the only major name to talk about Terra’s collapse over the past weeks. Changpeng Zhao (CEO of Binance) spoke in depth about the collapse and played an important role in the relaunches of the blockchain.

Jeremy Allaire CEO of Circle, which was one of the companies behind issuance of USDC stablecoins, commented that ;

“I’ve compared algorithmic stable coins to the Fountain of Youth or the Holy Grail. Some have called it financial alchemy. There will always be financial alchemists working on the magic potion to create these items and to find the Holy Grail of an algorithmic, stable-valued digital currency. So I fully expect continued pursuit of that.”

The collapse of UST led to discussions about regulating stablecoins.

Bitcoin

BitcoinOS Launches Charms: Metaprotocol for Programmable Tokens on Bitcoin and UTXO Blockchains

BitcoinOS (BOS) has announced the launch of Charms, a groundbreaking metaprotocol designed to enable native, programmable tokens on Bitcoin and other UTXO blockchains without the need for bridges or custodians. This new protocol allows developers to create decentralized applications and smart assets directly on Bitcoin, facilitating seamless token transfers across UTXO-based chains such as Cardano…
Read More

Bitcoin

qBTC to Release Open-Source Quantum-Safe PoW Bitcoin Side Chain, Adds Jameson Lopp as Advisor

This content is provided by a sponsor. LAS VEGAS, May 23, 2025 – Quantum Safe Technologies Corp, the research collective building qBTC, the world’s first quantum-safe sidechain for Bitcoin, today announced it will publish the full source code of its proof-of work- side chain protocol during the Bitcoin 2025 Conference in Las Vegas…
Read More

Bitcoin

Report: Trump administration wants USAID to adopt blockchain technology

USAID will change its name to the US Agency for International Humanitarian Assistance (IHA) By using blockchain technology, it will “radically increase security, transparency, and traceability” The revamp comes after Elon Musk’s Department of Government Efficiency (DOGE) cut USAID numbers from 10,000 to just under 300 in early February The Trump administration reportedly wants its…

Mavryk Dynamics raises $5M to build its RWA L1 blockchain network

USAID will change its name to the US Agency for International Humanitarian Assistance (IHA)
By using blockchain technology, it will “radically increase security, transparency, and traceability”
The revamp comes after Elon Musk’s Department of Government Efficiency (DOGE) cut USAID numbers from 10,000 to just under 300 in early February

The Trump administration reportedly wants its United States Agency for International Development (USAID) to “leverage blockchain technology” as it works on renaming the organization.

According to a report from WIRED, a government memo has been circulating among State Department officials detailing plans for USAID. In the 13-page document – first reported on by Politico – it states that as part of the revamp, USAID will change its name to US Agency for International Humanitarian Assistance (IHA).

The memo also suggests “leveraging blockchain technology” which will “radically increase security, transparency, and traceability.”

It adds: “This approach would encourage innovation and efficiency among implementing partners and allow for more flexible and responsive programming focused on tangible impact rather than simply completing activities and inputs.”

USAID staffers on leave

Since US President Donald Trump re-entered the White House, significant changes have been made to organizations in the US. One of which is USAID.

In early February, USAID staff were put on administrative leave “with the exception of designated personnel responsible for mission-critical functions,” according to a government notice.

Following the implementation of Elon Musk’s Department of Government Efficiency (DOGE), staff numbers at USAID have been cut from 10,000 to just under 300.

In a post on X in February, Musk wrote: “USAID is a criminal organization. Time for it to die.”

USAID is a criminal organization.

Time for it to die. https://t.co/sWYy6fyt1k

— Elon Musk (@elonmusk) February 2, 2025

Blockchain in humanitarian efforts

The use of blockchain in humanitarian efforts has been used before with many seeing the potential is can bring. In 2020, UNICEF invested around 135 Ethereum – about $30,000 at the time – into eight companies from seven developing countries to assist in developing prototypes and to scale their projects.

Financial services company AID:Tech turned to the payment rails of stablecoin issuer Circle to provide fraud-resistant disaster relief delivery in USDC in 2021. By doing so, they wanted to reduce inequality and increase opportunities by bringing accountability and transparency to the distribution of federal relief.

Realizing the benefits of blockchain technology, AID:Tech was the first company to use the technology to deliver international aid in 2015.