Bank Runs and De-Pegging Risks Still Haunt Stablecoins

[chainsniff]

Even overcollateralized stablecoins backed by cash and government securities face “bank run” risks if too many holders rush to redeem at once, according to Sentinel Global’s Jeremy Kranz.

Algorithmic and synthetic models carry even more risk, as they rely on derivatives or algorithms to maintain their dollar peg. This leaves them vulnerable to volatility, flash crashes, and counterparty failures. Kranz urged investors to read the fine print before trusting these assets.

[Nahid10]

De-pegging fears remain real, reminding investors that even “stable” assets carry systemic risk.

[EmTeam]

Transparency and collateral management are becoming non-negotiable for long-term stability.