Viewpoint: Any exchange that desires to launch an algorithmic stablecoin can "strike" other competing stablecoins.

Odaily News - Business analyst Adam Cochran recently tweeted about launching algorithmic stablecoins. Previously, Binance CEO CZ mentioned during an AMA session that their exchange plans to introduce smaller algorithmic stablecoins to address potential risks associated with larger stablecoins like USDT and BUSD. CZ stated that while USDT continues to dominate the stablecoin market, its lack of transparency makes him cautious.

Adam Cochran explained on Twitter the simplest method to launch algorithmic stablecoins. According to him, any exchange wishing to launch algorithmic stablecoins can "attack" other stablecoins without waiting for them to decouple.

Adam Cochran suggested that cooperating with "fake offshore stablecoins" such as TUSD and FDUSD could be the first step. By leveraging the exchange's free trading and leverage, stablecoin prices can be increased. The platform can then purchase ETH and BTC in bulk and convert them into USDC. He added that large-scale withdrawals of the relevant stablecoins would cause their market value to decline. The next step, as he pointed out, is to reinvest the assets back into the same exchange.

Adam Cochran mentioned that repeating these steps and subsequently selling the relevant stablecoins could ultimately fuel market FUD (Fear, Uncertainty, and Doubt) about them, effectively "taking out" competitors at a low cost. (Coinedition)