# kaal:claim:3396522-009

**Claim.** A fiat backed stable cryptocurrency that is not fully collateralized is exposed to arbitrage trade attacks of the kind George Soros used against the pound sterling; full collateralization is therefore a necessary defense.

**Type.** condition  **Support.** argued

**Holds when.**

- applies to stable cryptocurrencies claiming a fiat peg

**Source quote.**

> Without a 100% fiat collateralization, such projects would run the risk of arbitrage trade attacks similar to what Financier George Soros used to "break the bank of England

**From.** Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, *Stable Cryptocurrencies* (2019), IV. Stable Cryptocurrencies, page 24

**Cite as.** Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies (2019). SSRN: https://ssrn.com/abstract=3396522

**Verify.** sha256 of source PDF `ef5031b16aa53476ed618f0bdf92601cd4affb893692c701134bd9cba3ea8acf` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20et%20al.%20-%202019%20-%20Stable%20Cryptocurrencies.pdf

**Failure mode.** under-collateralization-arbitrage-attack  (family: valuation-and-pricing-failure)

**Topics.** consensus-and-security, tokenomics

**Keywords.** collateralization, arbitrage-attack, peg-design, stablecoins, soros-attack

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/3782216-028
- extended_by: https://wulfkaal.github.io/claims/3402701-002

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.