In the early hours, a single message instantly stirred the entire crypto ecosystem. Trump publicly stated "All cryptocurrencies must undergo strict regulation." As soon as this news broke, Bitcoin dropped below $64,000, and over $350 million was liquidated across the network within an hour. The market fell into a typical panic mode—large-scale buy-the-dip and frantic withdrawals happening simultaneously.

But amidst this chaos, I noticed an interesting phenomenon: while everyone was arguing whether to buy the dip or run away, more and more funds were quietly flowing into decentralized stablecoins. This made me rethink a question: during periods of high policy uncertainty, what do we truly need?

**Two voices, one truth**

The market is now divided into two camps. One says regulation is coming, so exit quickly; the other shouts "Historical bottom, buy now." But both overlook a more painful reality—when faced with black swan events, what you need is not to bet on the right direction, but "certainty."

Many so-called hot coins become fragile at such moments. Their value is often based on "future narratives," and narratives fear policy changes the most. Once regulatory expectations reverse, these coins can quickly go from hot favorites to hot potatoes.

**Why have stablecoins suddenly become valuable**

In contrast, decentralized stablecoins with transparent underlying assets and clear mechanisms demonstrate their value in such times. The reasons are simple:

First, structural advantages. Centralized stablecoins face a fatal weakness—regulatory risk. If policy directions change, your accounts could be frozen, and assets locked. But decentralized architecture is different; there are no single points of failure, and no possibility of "freezing." In times of policy uncertainty, this is the greatest safeguard.

Second, transparency of mechanisms. Stablecoins like USDD, which are over-collateralized, always have their collateralization ratio on-chain, allowing real-time verification. This transparency is especially valuable in volatile markets—at least you know what supports the asset, rather than blindly trusting promises from centralized institutions.

Additionally, during extreme market fluctuations, stablecoins become the most precious liquidity storage. When you're unsure of the next move, converting assets into stablecoins can hedge against price risks and maintain the ability to enter the market at any time. It’s like in a high-stakes game—convert chips into cash during intense betting, so you can immediately follow up on favorable cards.

**The dilemma of real-world choices**

Many investors around me have tasted gains during this volatility, but some have also suffered losses. Those caught in the downturn are mostly overly concentrated in a single hot coin. Conversely, those who converted part of their assets into stablecoins early on have had the chance to breathe and redeploy.

This isn’t to say you shouldn’t participate in risk assets, but risk management becomes especially critical in extreme conditions. Policy risk, market risk, technical risk—these are all objective realities. How to survive and find opportunities amid these risks depends on how well prepared you are.

The significance of decentralized stablecoins lies in providing an additional option—during uncertain times, offering a relatively stable store of value. It’s not about being unwilling to part with everything, but having a reliable landing point at critical moments.