In an online interview, Tether CTO Paolo Ardoino expressed his views on the panic against USDT caused by the recent UST de-anchoring.
Ardoino believes that the algorithm Stablecoin may be feasible in the range of tens of billions of dollars, but if it is to carry tens of billions of dollars in liquidity, the robustness of the algorithm Stablecoin is unknown.
I think the algorithm Stablecoin needs to have at least 3 times the market cap of the crypto asset reserve pool, although this will affect the growth; by contrast, Tether has a strict dollar asset reserve, and this reserve can cope with a possible black swan.