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> at least 90% There's no middle ground with stablecoins, they're either worth $1 or zero.
by delaaxe 4y ago
> at least 90%
There's no middle ground with stablecoins, they're either worth $1 or zero.
- the_gastropod 4y agoHmm? Terra is currently trading at $0.91. https://finance.yahoo.com/quote/UST-USD https://finance.yahoo.com/quote/UST-USD
- BaseballPhysics 4y agoI think the point is a stablecoin's value is in being stable. Otherwise it's just another coin. So if a stablecoin can't retain its peg, then it has no practical utility and it's effectively worth zero.
- samatman 4y agoIt's effectively worth what you can sell it for, so 0.91USD for Terra. This reflects a market consensus that there's about an 80% chance that it won't regain the peg, if you think about it.
- BaseballPhysics 4y agoOr it's an indication of how many people have sunk cash into the coin and are stuck HODLing in the hopes of it recovering, which... makes it just like any other coin.
- PretzelPirate 4y agoThis isn’t quite true. Even algorithmic stable coins can hit $0.99 and $1.01
- mikewarot 4y agoI'm sorry for the ambiguity... I was talking about Bitcoin dropping 90%+, Tether obviously could hit zero.