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Made a similar comment on other sections of this post but I'll reiterate here as well. Most (not all) of these stable coins are asset backed. If they can "prov
by eudoxus 4y ago
Made a similar comment on other sections of this post but I'll reiterate here as well.
Most (not all) of these stable coins are asset backed. If they can "prove" they have the 1:1 reserves OR there is a readily available "official" platform/tool/service/website that allows you to swap $1 USDX to $1 USD, then they haven't "lost" their pegs.
What we see here on coinmarketcap.com is just poor market sentiment causing an overwhelming number of sellers compared to buyers that are happy to take a 1-3% hit to exit quickly. Slowing burning through the order book depth until the arbitragers out number sellers, and things stabilize.
Eg. Tether USDT, you can still swap $1 USDT to USD on tether.io despite some exchanges listing it as low as $0.95 (note that others also list it as high as $1.06 at the same time). Exchange prices are poor indicators for this kind of stuff.
But, others you have mentioned, like UST, which are algorithmic and not collateralized can (and very concretely has) lose their pegs :)