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| Title | When Stablecoin is No Longer Stable - A Case Study on the Failure of TerraUSD |
| Creator | 周致遠 Nurbaev, Vladimir;Au, Cheuk Hang;Chou, Chih-Yuan |
| Contributor | 資管系 |
| Date | 2023-12 |
| Date Issued | 16-Feb-2024 15:02:36 (UTC+8) |
| Summary | Comparing to other price-volatile cryptocurrencies, stablecoins provide a reliable way to store value and make transactions, and thus are more suitable for daily-life usage and investment risk control. However, there remains a lack of understanding of how stablecoin can gain success. This may lead to the introduction of stablecoins based on uninformed proposals, which may eventually fail. In turn, owners of these stablecoins may suffer from significant financial losses. Using theories of Information Systems and digital startups failures as the theoretical foundation, our study identified four underlying factors (lack of scarcity, lack of fiat reserve backup, decentralization, and failure of value creation) and two triggers (massive selling by major investors and algorithm malfunction) behind the collapse of a stablecoin, based on the case of TerraUSD’s collapse. Our findings provide implications for stablecoins issuers to prioritize maintenance and foster user adoption, thus increasing the likelihood of success of stablecoins. |
| Relation | Proceeding of the 44th International Conference on Information Systems (ICIS 2023), Association for Information Systems (AIS) |
| Type | conference |
| dc.contributor | 資管系 | |
| dc.creator (作者) | 周致遠 | |
| dc.creator (作者) | Nurbaev, Vladimir;Au, Cheuk Hang;Chou, Chih-Yuan | |
| dc.date (日期) | 2023-12 | |
| dc.date.accessioned | 16-Feb-2024 15:02:36 (UTC+8) | - |
| dc.date.available | 16-Feb-2024 15:02:36 (UTC+8) | - |
| dc.date.issued (上傳時間) | 16-Feb-2024 15:02:36 (UTC+8) | - |
| dc.identifier.uri (URI) | https://nccur.lib.nccu.edu.tw/handle/140.119/149846 | - |
| dc.description.abstract (摘要) | Comparing to other price-volatile cryptocurrencies, stablecoins provide a reliable way to store value and make transactions, and thus are more suitable for daily-life usage and investment risk control. However, there remains a lack of understanding of how stablecoin can gain success. This may lead to the introduction of stablecoins based on uninformed proposals, which may eventually fail. In turn, owners of these stablecoins may suffer from significant financial losses. Using theories of Information Systems and digital startups failures as the theoretical foundation, our study identified four underlying factors (lack of scarcity, lack of fiat reserve backup, decentralization, and failure of value creation) and two triggers (massive selling by major investors and algorithm malfunction) behind the collapse of a stablecoin, based on the case of TerraUSD’s collapse. Our findings provide implications for stablecoins issuers to prioritize maintenance and foster user adoption, thus increasing the likelihood of success of stablecoins. | |
| dc.format.extent | 122 bytes | - |
| dc.format.mimetype | text/html | - |
| dc.relation (關聯) | Proceeding of the 44th International Conference on Information Systems (ICIS 2023), Association for Information Systems (AIS) | |
| dc.title (題名) | When Stablecoin is No Longer Stable - A Case Study on the Failure of TerraUSD | |
| dc.type (資料類型) | conference |