The issue with stablecoins in general and the issue with crypto building so much around stable coins

is that when they fail, they devastate everything that depends on them.

Hello. Hello and welcome to Tech Won't Save Us. I'm your host, Paris Marks, and this week my guest is Bennett Tomlin.

Bennett is the co-host of the Crypto Critics Corner podcast and the writer of the Fudd Letter,

a newsletter that digs into the crypto industry. Now, you might have

noticed that over the past six months, the crypto industry has been headed on a downward

slope with the prices of major cryptocurrencies like Bitcoin and Ethereum tanking about half,

even more than that possibly. And last week, a particularly devastating event where UST or Terra, one of the major stable

coins, used to be the third largest, collapsing to effectively zero.

It was around 12 cents the last time I looked.

And its connected governance token, Luna, crashing to a fraction of a penny from about

$60 or $80 and a high of over $110 last month.

This caused a lot of pain for a lot of people, but it also showed the fundamental fragility

and problems that are built into the foundational aspects of the crypto ecosystem.

And so in this conversation, Bennett and I talk about the roots of

that problem and the vulnerabilities that stable coins introduce into the system while also making

it more accessible for people to get into the crypto ecosystem, which in itself is still

difficult and confusing for a lot of people. This is an industry ripe with

scams and fraud, and as it declines, once again, from its biggest level so far, there are going

to be consequences. Coins and projects are going to fail. People are going to lose a lot of money,

but it's also a time to gain an even greater understanding of what

goes on in this industry to hopefully ensure that there's regulations to stop the worst aspects of

...