Why is the value of USDT less than one dollar?

[vv181]

I get what you mean. I also wondered, I'm afraid we can't know for sure but only speculate, Tether has been known(proved) to be shady, as such, to find clarity wouldn't be easy. Ranging from UST shitshow, China commercial paper[1], Financial Times FUD[2], ~$10B redemptions, other stable coins competition, the overall market uncertainty, and especially as matter of fact, their current reserves condition(lack of liquidity) may indicate that the whole market doubting USDT stability.

[1] https://www.coindesk.com/business/2021/11/12/tether-bitcoin-and-chinese-commercial-paper-at-scale/
[2] https://tether.to/en/ft-fixation-continues-same-rehashing-of-selective-old-news-on-new-medium-of-communication

[blockman]

I've been seeing that with USDT even before the issue has popped on it. It's really fluctuating from $0.99 to $1.0xx but I understand that it should really be valued and won't move that much and equal to a dollar.
I guess everyone's going to panic if we start to see it go down at $0.98 and then the whole market will collapse as we know that there's a huge contribution that's coming from the Tether.

[Oilacris]

I've been seeing that with USDT even before the issue has popped on it. It's really fluctuating from $0.99 to $1.0xx but I understand that it should really be valued and won't move that much and equal to a dollar.
I guess everyone's going to panic if we start to see it go down at $0.98 and then the whole market will collapse as we know that there's a huge contribution that's coming from the Tether.

Highest dropped?
Tether Loses Dollar Peg as Crypto Anxiety Hits No. 1 Stablecoin
https://www.bloomberg.com/news/articles/2022-05-12/tether-moves-to-reassure-market-after-biggest-stablecoin-slips

Falling to 94.55
As long it wont be falling .90 then i dont see some issues
yet volatility for a stablecoin isnt something shocking imho.

[fuer44]

What is clear is that USDT is a crypto, not a conventional currency. So, it is not surprising that the USDT price will not be the same as the dollar exchange rate even though at the beginning of its launch in the market, the price is always close to the dollar. Apart from that, we also know that the crypto market is very volatile even though the USDT is called a "stablecoin", but that does not rule out the possibility that the price will also fall following the current trend.

[blockman]

I've been seeing that with USDT even before the issue has popped on it. It's really fluctuating from $0.99 to $1.0xx but I understand that it should really be valued and won't move that much and equal to a dollar.
I guess everyone's going to panic if we start to see it go down at $0.98 and then the whole market will collapse as we know that there's a huge contribution that's coming from the Tether.

Highest dropped?
Tether Loses Dollar Peg as Crypto Anxiety Hits No. 1 Stablecoin
https://www.bloomberg.com/news/articles/2022-05-12/tether-moves-to-reassure-market-after-biggest-stablecoin-slips

Falling to 94.55
As long it wont be falling .90 then i dont see some issues
yet volatility for a stablecoin isnt something shocking imho.

I think I've missed that news or I've just forgotten it. Well, people are too worried about these dollar pegged stable coins and for sure even just a single move of it, they'll all panic on it. Those who have been saving their wealth into a stable coin, they're pretty worried whenever there's a huge fluctuation to the market and most of its affection goes to bitcoin and as we observe, whenever bitcoin moves, stable coins like Tether also decreases a bit of it. Everyone who's worried about the fluctuations happening in stable coins should think of a better long term strategy and plan and the best of it is to just trust bitcoin in the long term.

[justdimin]

After what happened to UST. Many crypto users are now choosing BUSD and USDC. because these two Stablecoins conduct regular audits.
Meanwhile, USDT in terms of audit, regulation and underlying storage is less transparent. so many sell it and switch to USDC and BUSD. maybe this is also one of the reasons. Moreover, there have been problems in the past that have tarnished the reputation of USDT itself. although USDT at that time was able to solve the problem well. But people are still afraid and feel that USDT is still a high risk.

I would say that people do not even pick those anymore. USDT lost a ton of blood, there were 10+ billion dollars worth of withdraws from there, and they had to cash out so much to pay for that much leaving them all at once but they did it, each time is a bit of a problem for them because they invest into liquid assets to make a profit as well.

Secondly, USDC didn't grow all that much and neither did BUSD but that could be mainly because of the market going down as well, people might be leaving all together instead of just turning their crypto to stablecoins. This UST deal was just something major and hurt all of the market and not just even stablecoins.