Just saw someone tally stablecoin transparency, and honestly I’m getting more and more uneasy the more I look. For that USDT audit report, at the end of the day it’s basically, “We hired a third party, but don’t ask about the details.” USDC is clearer, though—but didn’t the Silicon Valley Bank incident last year still nearly trigger a bank run? Even with reserves that are transparent, when panic hits, people will still rush to get out first.

When funding rates get extreme, the community keeps arguing about whether it’s a reversal or whether the bubble will keep getting squeezed. I don’t know either—but I do know this: the psychology of a run doesn’t really depend on whether reserves are transparent. If you don’t know whether others will run first, then you can only run first. It’s like those algorithmic stablecoin projects—their whitepapers may look great, but human distrust for a single second can topple you. Anyway, I wouldn’t touch those projects with returns that are wildly out of proportion—just in case you can’t even redeem your principal.