Sonic Labs canceled plans to introduce algorithmic algorithmic algorithmic algorithmic algorithm, deciding to develop an alternative from the United Arab Emirates.
On March 22, co -founder of Sonic Labs, Andre Cronje, said that the company is working on Stablelecoin algorithmic algorithmic at the annual percentage rate (APR) up to 23%, Cointelegraph informed.
However, a week later the company reversed the course.
“We will no longer spend algorithmic algorithmic Stablecoin,” said Cronje in the post on March 28. “Completely unrelated, we will release mathematically numeric Dirham, which is resolved and denominated in USD, which is definitely not algorithmic algorithmic Stablecoin.”
The strategy will change shortly after the ZEA announced that it will introduce its digital Digital Dirham Central Bank (CBDC) digital currency in the fourth quarter of 2025.
Source: Other Cronje
Khaled Mohamed Balama, Governor of the Zea Central Bank, said Dirham of Blockchain could enhance financial stability and aid in the fight against financial crime. The digital currency will be accepted with the physical counterpart in all payment channels, According to to the report from The Khaleey Times.
Related: Paolo Ardoino: Competitors and politicians intend to “kill the imprisonment”
Sonic had to criticize Stablecoin plans
The reversal takes place after the universal criticism of the original Sonic plan to launch Algorithmic Stablecoin – a model that has raised concerns in the cryptographic industry since the fall of the Terra ecosystem in 2022.
Cronje himself earlier admitted To experience post -traumatic stress team (PTSD) associated with algorithmic Stablecoin due to previous cycles:
“I am sure that our team today broke the stable coins of Algo, but the previous cycle gave me so much PTSD, I am not sure if we should implement.”
In May 2022, the TERRA ecosystem worth $ 40 billion collapsed, erasing tens of billions of dollars in a few days. Algorithmic Stablecoin, Terrausd (mouth), brought over 20% of the annual efficiency (APY) on the anchor protocol before its collapse.
When he lost his dollar dollar, reaching the lowest level of 0.30 USD, co -founder of Terraform Labs, took to Kwon to X (then Twitter) to share his rescue plan. At the same time, the value of Luna’s sister token – once the 10 best cryptocurrency projects by market capitalization – dropped by 98% to 0.84 USD. Luna traded north of USD 120 at the beginning of April 2022.
Related: Tether’s USA Holdings exceeds Canada in Taiwan, it takes 7th place around the world
The fall of algorithmic Issuer Stablecoin created shock waves among cryptocurrency investors and legislators.
To reduce the system risk, the Cryptocurrency (MICA) regulations Act (MICA), the European Union markets prohibit algorithmic Stablecoin to avoid another defeat similar to Terra.
Meanwhile, Stablecouins are increasingly used for smaller, daily payments, not huge transfers, according to the managing partner Coinfund David Pakman.
“We have observed a significant decrease in the size of each Stablecoin transaction, which indicates the fact that they are used more as payments and less for large transfers,” said Pakman during Cointelegraph’s Chain reaction Live show on October 27.
https://www.youtube.com/watch?v=1iyxu9w47to
Warehouse: Ripple says that the “Over” lawsuit, Trump at Das and more: Hodler’s Digest, March 16-22
