ZachXBT says stablecoins are key to blockchain legitimacy
Crypto security analyst ZachXBT has emphasised that the presence of stablecoins from major issuers like Tether (CRYPTO:USDT), Circle, and Paxos is crucial for assessing a blockchain's legitimacy.
This assertion follows U.S. President Donald Trump's announcement to include Bitcoin (CRYPTO:BTC), Ether (CRYPTO:ETH), XRP (CRYPTO:XRP), Solana (CRYPTO:SOL), and Cardano (CRYPTO:ADA) in the country's strategic crypto reserves.
ZachXBT noted that neither Cardano nor the XRP Ledger currently hosts stablecoins from these major issuers, suggesting that if these blockchains offered significant value, stablecoin integration would have occurred.
"If the major stablecoin issuers saw 'value to capture' on the blockchains, they would have integrated their stablecoins into the networks," he argued.
Cardano Foundation CEO Frederik Gregaard countered that stablecoin integration is just one metric and that true legitimacy stems from security, decentralisation, sustainability, and real-world utility.
He emphasised Cardano's focus on technical excellence and scalability, anticipating growing interest from stablecoin issuers as the network matures.
While Cardano and XRP do not have major stablecoins directly on their networks, they have alternative stablecoin solutions.
Cardano has Djed and USDM, while Ripple launched RLUSD (CRYPTO:RLUSD), which is now trading on several exchanges.
ZachXBT also highlighted that dormant wallet addresses linked to Ripple co-founder Chris Larsen hold over $7 billion in XRP, sparking speculation about potential future sell-offs.
The debate over stablecoin presence as a legitimacy indicator has sparked strong reactions, with some accusing ZachXBT of elitism and others pointing out that Bitcoin lacks major stablecoins yet remains highly successful.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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