this post was submitted on 12 Aug 2025
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Explain Like I'm Five

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[–] mustard57@lemmy.world 5 points 2 days ago (2 children)

So their utility is that they are a form of USD that can easily interact with cryto markets.

[–] squaresinger@lemmy.world 7 points 2 days ago (1 children)

Except that you have some anonymous strangers who pinky swear that they have said real-wolrd-asset backing.

There've been more than enough instances where said backing just didn't exist.

[–] schnurrito@discuss.tchncs.de 4 points 2 days ago

isn't that how economic crises start or something.......?

[–] Zarxrax@lemmy.world 3 points 2 days ago

Basically, yeah