According to Preston Byrne, stablecoins are \u201cnot stable,\u201d and are doomed to fail. Basis, a start-up positioning their token as a stablecoin, has reportedly raised over $133 million from investors, and some are having none of it. While there is a great need for more \u201cstable\u201d cryptocurrencies, one can\u2019t just mint tokens and declare them stable. There has to be an underlying mechanism to make it so. But even the assumption that such a mechanism exists is questionable. In a series of Tweets and posts, blockchain technologist Preston Byrne, who has been saying that \u201cstablecoins are doomed to fail,\u201d lambasted the idea and the team behind it. https:\/\/twitter.com\/prestonjbyrne\/status\/986583860858310658 Byrne\u2019s statements may sound quite harsh, but a little peek at the Basis white paper pushes one to side with Byrne. In their white paper, Basis wrote: \u201cDuring an economic boom, people have more money, so they want to buy more goods, causing the prices of goods to rise, which fuels demands for higher wages, which means people have even more money.\u201d With all due respect, that\u2019s not how the world works. In general, wages rise at a significantly slower pace than inflation does. The only time there is a sudden jump in wage ranges is during special situations where new technologies arise that require an entirely new set of skills very few readily have, which means there is an initial disparity between the supply and demand of workforce. \u00a0But when prices of goods rise, people can\u2019t just \u201cdemand for high wages\u201d and be automatically granted it so that they \u201chave even more money.\u201d The most likely reaction is for people to decrease or put off spending until market prices are more favourable. According to Byrne, there are no such things as stablecoins, and those attempting to offer it thinking that cryptocurrencies are exempt from the laws of economics are mistaken. https:\/\/twitter.com\/prestonjbyrne\/status\/986588827375546368 In one of his earlier posts, Byrne\u2014who himself admits he has a \u201cdeep and enduring disdain for the \u2018stablecoin\u2019 concept,\u201d expounded on what he finds preposterous: \u201cthe idea that it is possible for \u2018crypto-economic\u2019 magic and game theory to ensure that a cryptocurrency can be reliably pegged to the value of some real asset without requiring a bankruptcy-remote contractual mechanism to ensure convertibility of the crypto-asset into the real deal (something mainstream finance already does extremely efficiently).\u201d Writing about previous stablecoin projects that \u201cbroke\u201d within 12 days, Byrne says we\u2019ll see whether Basis could break that record. \u201cTBD: whether Basecoin can set a new record by making it two whole weeks,\u201d he wrote.