Sonic Labs Preparing to Launch Algorithmic Stablecoin Despite Past Concerns
Date: 2025-03-24 Author: Henry Casey Categories: BUSINESS
Sonic Labs co-founder Andre Cronje said the project is actively working on scaling its ecosystem and implementing a new stablecoin model. While no specific launch dates have been announced, Cronje emphasized that the team is in the process of preparing for a full launch.
Cronje previously wrote that Sonic had “gotten the gist” of algorithmic stablecoin technology, but he was hesitant about full implementation. He openly admitted that the events of the previous market cycle likely left him with post-traumatic stress, which made him hesitant to pursue the idea.
Many attribute Cronje's concerns to the failure of the UST stablecoin and the collapse of the Terra ecosystem in 2022, an event that became one of the most high-profile crises in the history of DeFi.
Despite this, Andre Cronje later hinted that the team had made a decision in favor of the launch. In his message, he briefly expressed the team's mood with the words: "We only live once."
The message sparked a lively discussion among users. Some expressed support and interest in the initiative, but others met the idea with skepticism. One user stated that an algorithmic stablecoin is inherently a contradiction in terms. In his opinion, if an asset is truly stable, there is no need for an algorithm. And if stability is provided by an algorithm, there is a risk of losing the link to the underlying asset - especially in stressful situations when stability is critical.
Amid these discussions, it was also recalled that in March, former US President Donald Trump proposed a law regulating the issuance and circulation of stablecoins. This move could have an impact on all future digital asset projects, including the Sonic initiative.
Sonic Labs is thus taking a risk, but also opening up an opportunity to take a place in a niche that many still consider too risky. The success of the new stablecoin will depend not only on the technical implementation, but also on the trust of the community.
