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Stablecoins claim to achieve price stability by pegging their own prices to stable assets like the USD. The promise of stability has led many to call stablecoins the “holy grail of cryptocurrencies’. But history has taught us over and over that currency pegs can break, and cause wide-spread catastrophe when they do. In this article, I will demonstrate the weaknesses and dangers of each of the 3 categories of stablecoins backed by real-world collateral. We need frequent professional audits to prove that the collateral is there because real world assets are not visible on the blockchain. Because collateral is not transparent, the stablecoin is weak to speculation.