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This title is... wrong. It's entirely normal for stablecoins to fluctuate in minor ways like this [1], even USDC (which is literally backed by actual US dollar
by carlosdp 4y ago
This title is... wrong.
It's entirely normal for stablecoins to fluctuate in minor ways like this [1], even USDC (which is literally backed by actual US dollars in a bank account) fluctuates +- 1 cent regularly. This is because these prices come from a variety of exchanges trading these currencies, with different supply pools.
Arbitrage remediates this very quickly (Tether, at time of writing, is at $1.00). Not defending Tether, it's backing is definitely sketchy, but there's no indication it's in trouble at the moment, and this being on the front page is incredulous to me since it seems to be just some random dudes pulling up Google Stocks and speculating?
[1] https://www.coingecko.com/en/coins/tether https://www.coingecko.com/en/coins/tether (look at 14d window)
- uniqueuid 4y agoThe very chart you linked shows a dramatic increase in volatility over the last days. That surely points to increased stress tether is under.
- thebean11 4y agoOr it's just the result of a massive increase in volatility in the crypto market in general. I guess it depends what you mean by increased stress on tether.
- carlosdp 4y agoYea not debating that, nor that it wouldn't lose it's peg if things get unstable enough. Just that the title makes it look like it's in a death spiral like TerraUSD, which there doesn't seem to be indication of right now at all. The increased volatility (which remains in the < 1 cent range) can easily be explained by general market volatility right now. That said, again, not defending Tether in general. I hold 0 USDT, always recommend USDC.
- ProjectArcturis 4y agoThat chart shows Tether hit a 3.5-year low today. Hasn't been this low since the last crypto crash. No guarantee that will continue, but there are definitely some very smart, very rich people looking at how to break Tether.