Complex Systems with Patrick McKenzie (patio11) Taking stablecoins seriously, with Haseeb Qureshi
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Apr 10, 2025 
Haseeb Qureshi, managing partner at Dragonfly, discusses the critical evolution of stablecoins as vital financial instruments rather than mere tools for illicit activities. He highlights their role in facilitating capital flight in restrictive economies and improving crypto trading efficiency. The conversation delves into regulatory challenges and the potential for stablecoins to reshape traditional banking and international finance. With a focus on their diverse applications, Qureshi emphasizes their importance in the dynamic world of cryptocurrency.
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Tether's Continued Growth
- Tether's market cap is over $100B despite known shadiness since 2017.
- This suggests significant factors beyond illicit activities are at play.
Stablecoin Evolution
- Early stablecoins aimed for decentralization and reduced reliance on central parties.
- Most algorithmic stablecoins, like Luna, failed due to over-leveraging and lack of central bank backstops.
VC Perspective on Stablecoins
- Dragonfly VC passed on Luna investments, predicting its failure due to its flawed mechanism.
- They invested in MakerDAO, Frax, and Athena, which survived market drawdowns.