5 Truths About Stablecoins Every Crypto Investor Should Know

They aren’t stable and may be prone to “bank runs”

Stephen Foerster
8 min readJun 27, 2022

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JUSTIN TALLIS/AFP via Getty Images

The cryptocurrency industry is still in its infancy, and the sub-category of stablecoins even more so. However, with an estimated size of around $160 billion — compared with only $11 billion in June 2020 — the stablecoin sector has grown considerably. Trading data for some of…

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Stephen Foerster

I’m a Finance prof, CFA, and author of In Pursuit of the Perfect Portfolio (with Andrew Lo). I write stories about investing. (I don’t give financial advice.)