Synthetic Assets and Beanstalk Stablecoins Receive F Grades from Bluechip
A nonprofit stablecoin assessment entity called Bluechip has recently given an F grade to Synthetix’s fiat tokens SUSD and SEUR, as well as Beanstalk’s dollar-pegged asset BEAN. These stablecoins have been included in Bluechip’s “Red Flag List,” indicating a strong recommendation against using them. The rating agency cited several issues with SUSD, SEUR, and BEAN that triggered red flags. For example, SUSD tokens are minted by staking SNX, but cannot be redeemed for the underlying SNX, requiring holders to rely on liquidity pools. BEAN, on the other hand, is not backed by any reserves.
Bluechip’s Rating System
Bluechip, founded in 2023, uses a rating system to evaluate stablecoins. As of February 2, 2024, three stablecoins have received an A rating, while two have received an A-. Additionally, five tokens have earned a B+ grade, one has received a C, and six fiat or gold-backed coins have been given a D rating.
Conclusion: Exercise Caution with SUSD, SEUR, and BEAN
If you are interested in using stablecoins for your crypto transactions, it is important to be cautious when considering SUSD, SEUR, and BEAN. Bluechip’s F grade and inclusion of these tokens in its Red Flag List serve as a warning against utilizing them due to various concerns. Make sure to carefully evaluate the stability and backing of any stablecoin before incorporating it into your crypto activities.
Benito Cormi, the brilliant crypto analyst who has made waves in the world of cryptocurrency. With his razor-sharp analytical skills and deep understanding of the digital asset landscape, Benito has become a trusted figure in the industry and remains at the forefront, tirelessly researching and analyzing market trends to help individuals and businesses make informed decisions in this dynamic landscape.