In the initial stage of the issuance of a new stablecoin, if its price - anchoring mechanism is stable, it can provide a stable value storage and trading medium in the market, which is conducive to market stability. However, when market volatility intensifies, some algorithmic stablecoins may face challenges. If the algorithm cannot effectively adjust the supply and demand of stablecoins according to market changes, the stablecoin may deviate from its anchored value, affecting its own price and the stability of the relevant cryptocurrency market. Investors can evaluate the reliability of the price - anchoring

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Understanding the balancing act for stablecoins is crucial. If their algorithms can't keep up, it can shake things up pretty hard in the market. Investors definitely need to dig deep into how these systems work before jumping in!