8 months ago
On Feb. 1, 2024, the independent, nonprofit stablecoin appraisal entity Bluechip made a noteworthy declaration. They officially bestowed an F people upon Synthetix’s fiat tokens SUSD and SEUR, alongside Beanstalk’s dollar-pegged plus BEAN. Bluechip went connected to uncover that some of these stablecoins person been included successful the organization’s “Red Flag List,” signaling a beardown proposal against utilizing these peculiar stablecoin tokens.
SUSD, SEUR, and BEAN Graded F by Stablecoin Rating Organization Bluechip
As per a connection shared connected the societal media level X, Bluechip has issued an F standing for Synthetix’s and Beanstalk’s fiat-backed cryptocurrency assets, namely, SUSD, SEUR, and BEAN. These stablecoins articulation Tron’s USDD stablecoin, which besides received an F people successful Bluechip’s June 3, 2023, assessment of USDD.
“Today, we are assigning an ‘F’ people to the pursuing stablecoins,” Bluechip stated connected Thursday. “Synthetix tokens similar SUSD and SEUR [and] BEAN by Beanstalk. These tokens are portion of Bluechip’s Red Flag List, a database of stablecoins that person triggered a reddish emblem outlined successful our framework.” The stablecoin standing bureau added:
Synthetix tokens similar SUSD and SEUR — Stablecoins similar SUSD are minted by staking SNX astatine a collateral ratio of 500%. SNX is not lone the collateral but besides the autochthonal token issued by Synthetix. SNX is classified arsenic endogenous collateral for SUSD, triggering a reddish flag. Moreover, these stablecoins cannot beryllium redeemed for the underlying SNX. Holders beryllium connected liquidity pools to exit from Synthetix stablecoins to different assets.
Bluechip besides said erstwhile the terms of BEAN falls beneath its intended $1, the protocol borrows tokens from holders and subsequently burns them to diminish the supply. Conversely, erstwhile BEAN exceeds the $1 mark, caller tokens are generated to augment the supply. “BEAN is not backed by immoderate reserves, triggering a reddish flag,” Bluechip added.
“Governance rights are earned by depositing whitelisted assets,” the nonprofit continued. “However, voting is done off-chain, with decisions implemented by a multi-sig of anonymous contributors. The multi-sig besides has unrestricted power implicit astute contracts arsenic governance enforcement doesn’t exist.”
In the summertime of 2023, Bluechip emerged onto the scene, with its founders including Garett Jones, an subordinate prof of economics astatine George Mason University, and 2 innovators down the SMIDGE standing model employed by Bluechip. Within their evaluation spectrum, arsenic of Feb. 2, 2024, 3 stablecoins person garnered an A rating, portion 2 secured an A-. Additionally, 5 tokens earned a B+ grade, 1 received a C, and a full of six fiat oregon gold-backed coins landed with a D rating.
What bash you deliberation astir the F grades Bluechip gave to SUSD, SEUR, and BEAN? Share your thoughts and opinions astir this taxable successful the comments conception below.
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