Deutsche Bank researchers have issued a stark warning about the stability of stablecoins, predicting that most will fail due to a lack of reliability and transparency. The study, which examined 334 stablecoins, found that only 14% have survived so far, raising concerns about the long-term viability of these altcoins pegged to fiat currencies.

The analysts emphasize that stablecoins' success hinges on factors like reliability, reserve support, and operational controls, which many currently lack. Even dominant players like Tether, with a market value exceeding $100 billion, have faced scrutiny over transparency and reserve assets, receiving fines from regulatory authorities. The collapse of Terraform Labs' TerraUSD and Luna tokens serves as a cautionary tale, exposing the risks inherent in the stablecoin market when issuers fail to maintain adequate reserves and transparency.