Bitcoin Forum

Tether (USDT), the world's largest stablecoin by market value, has finally regained its dollar peg after over two months of instability.

The token had first broken its peg in the second week of May, when Terra's algorithmic stablecoin TerraUSD or UST collapsed. This sparked panic selling in other dollar-pegged cryptocurrencies, and Tether's peg broke as well. The token fell to as low as 92 cents on some exchanges.

However, Tether has finally found stability once again, regaining its dollar peg on July 20. This is the first time the token has been stable for over two months,  and hopefully, it is a sign that the worst is finally over for the stablecoin.

Tether's stability is important for the cryptocurrency market as a whole, as it is often used to trade other cryptocurrencies. A stable Tether means that traders can buy and sell cryptocurrencies without having to worry about the volatility of the market.

So far, it seems like Tether has finally regained its footing, and the cryptocurrency market can breathe a sigh of relief. Let's hope that this stability is here to stay.

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I've not noticed anything strange on the Tether charts over the last couple of weeks to cause any sort of panic. It has always experiences mild volatility with the $0.01 to $0.005 range and that is not also surprising, considering trades are always occuring over the different exchanges.

Do you yourself believe that all tokens have collateral?
If so, please give me a link to their audit. This is the reason why Tether is losing its price because people think that the price of this token will fall. Panic will constantly occur in the cryptocurrency market and TerraUSD is not the last stablecoin to collapse.

I just checked on the coinbase chart from tradingview and it fell to be worth 94-95 cents for a while in May (not sure how long, it's just a low it reached).

I think that's interesting though because it's decent interest for those who think it'll go back to its peg (or those who might know it's collateralised to profit off volatility).

I've seen wbtc-btc pair in the past do some interesting moves up and down quite a bit too (especially historically). These are both normally caused by increased volatility in the market just having an affect as exchanges don't arbitrage much.

Even that $0.01 different might seem small but its huge bro. 1% price change on a "stablecoin" shouldn't be happening.
Imagine if you have 100,000 USDT and try to exchange it to USD after that drop, that's already a loss of $1000

UST crash not only make USDT worried but also other stable coins too.

I think people should be aware (FIAT USD) is the most strong asset backup compared the system like UST. To be honest, TETHER losing value is not really new at all because before UST we already got some downgrade of TETHE to level 0.7$ or 0.9$ but once again can back up again.

Not really to worried, since FIAT backup is the most strong asset backup. Unless, TETHER make a fraud while they minting USDT without the asset backup.

Right, as long as there are no huge de-peg, I think Tether still looks good.

Perhaps all eyes are on the stable coins in the last couple of months because of what happen to Terra USD that's why they are being highlighted and the moment someone see it's de-pegging to supposedly 1:1 if become a huge news.

But as the title of this thread, it seems that it has recovered already, so no worries for now. And I guess Tether really knows that they are in the watchful eye so they will have to work double time and proved that they are not going to collapse by having reserves right away.

Although it suffers small losses in the meantime, tether is currently the safest among stable currencies. As for the collateral thing, I don't really believe in it. Because this is against the logic of the system, and be sure, the founders do not take this risk in case things go wrong. There will be small drops in between, of course, but it is necessary to trade with these losses in mind. Because these small drops mean big losses and big money.

You've said it yourself. As long as there's no huge de-peg, Tether will do fine. There's always a risk tied to stablecoin investments. Without regulations being enforced on the stablecoins industry, investors would be nothing but doomed. Fiat, on the other hand, is a much better option. It's always stable and backed by the full faith and credit of the government.

Stablecoins are just a tool for traders to make profit during crypto's ups and downs. They're not meant to be used as a safe haven for your hard-earned money. Tether's practices are quite shady, so I wouldn't be surprised if someday it goes all the way down the drain leaving investors "rekt" in the process. Just my opinion :)

While I also don't fully believe they have enough collateral, I don't think I'm going to lose much of the crypto holdings I've had. To me, USDT is legit and safe, even with the panic that took place. I don't believe that if they can't come up with proof, it will create a tragedy for the entire market. If that happens, it is also important to accept the fact that we are wrong with everything we are arguing about as well as believing.

In short, I don't consider stablecoins safe havens, but rather a medium to convert assets. In addition to shady allegations, USDT relies on so much centralization that it can never be said to be safe.

The Tether stablecoin remains one of the most popular stablecoins, and if it were to go down one day, it would be an even worse crisis than the UST. There is still a possibility that it may occur, but I do not expect it to do so.

Now algorithmic stablecoins cause more concern than the usual USDT for everyone. So a few days ago, another algorithmic Nirvana stablecoin based on Solana lost its value by 90%. It seems that this stablecoin will be impossible to revive and it will become a new UST.

Centralized stablecoins are prone to failure simply because of they way they were designed. There are no investor protections that would guarantee your money will be safe in case of a major hack, the company running away with the money, or the coin losing its peg over time. You're much safer with Fiat than a stablecoin because it's backed by the full faith and credit of the government. If Tether or any other major stablecoin goes down, you can expect crypto prices to fall like crazy. It would be a bigger crisis than the one faced by UST.

If only people understood the risks of stablecoins, then the market would've headed into a different direction. At least, we have decentralized stablecoins to save the day (eg: DAI). As long as people have a choice, nothing else matters. Just my opinion :)

I don't really believe that a stablecoin like Tether has "real money" for the amount of USDT tokens circulating in the market. Even when it was audited by an audit firm I was a little skeptical, because we don't know for sure how they manage money behind the scenes.

Speaking of USDT, a lot of people use it to yield farm for yields as high as 20%. While I think this is a great way to make money, altcoins like ELF and NAOS should provide higher returns in a bull market. If you are looking for high yield, consider MAXX finance with its 80% APY. They are giving a way APY boosting NFTs on their website right now. I think you can stake NAOS too.

The point here is that USDT is not like other places, they do have a lot of money which means that if they are ever depegged then they could end up with getting it back on again. I know that it is not going to be something that is easy for them to do, which is why it took them for 2 months to do this, but they would NEVER stay depegged forever unless they do something shady.

If they are the company they say they are, it will be cheaper, like how it was 92 cents, then they could buy it all up and they could make it 1 dollar again because the money is in their accounts. Of course they prefer people do that, this way people would be buying and making it whole again.