Tether's Stablecoin USDT 'Has a Peg Stability Problem', Claims Analyst

[Xal0lex]

All that is required to participate in the DAO is to hold MKR. You can argue it is not as decentralized as Bitcoin, and possibly not as anonymous, and you'd be right -- its not. But its an example of a stablecoin that is somewhat decentralized and anonymous.

I'm not arguing about DAI, but what scares me is how DAI is losing its peg to the dollar. It has always been a common belief in the crypto community that DAI is more resistant to de-pegging from a stable exchange rate than USDT or USDC. The March events surrounding the USDC demonstrated just how much the DAI is susceptible to de-pegging. It is just as likely to lose its stability rapidly as centralized stablecoins. In March, DAI instantly lost 15% of its value and it took almost 3 weeks to stabilize its value.

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[larry_vw_1955]

In March, DAI instantly lost 15% of its value and it took almost 3 weeks to stabilize its value.

DAI went down to only $0.85 i didn't know that. I bet alot of people made a killing. someone must have lost some money too though. 3 weeks you say it was at 85 cents? i'll have to look into that. 

[Xal0lex]

In March, DAI instantly lost 15% of its value and it took almost 3 weeks to stabilize its value.

DAI went down to only $0.85 i didn't know that. I bet alot of people made a killing. someone must have lost some money too though. 3 weeks you say it was at 85 cents? i'll have to look into that.  

Not really, it took the DAI 3 weeks to stabilize its peg to the dollar. Look at the chart of the DAI from March 12 to March 30. DAI was constantly subject to fluctuations and almost daily de-peg. This is not a good indicator for a decentralized stablecoin.

[ShinyStarPrincess]

https://decrypt.co/154580/tethers-stablecoin-usdt-has-a-peg-stability-problem-claims-analyst

In response to these findings, Carey suggested that Tether should consider removing its redemption fee and minimum requirements.

"The redemption fee is a USDT-specific problem. USDC does not have such a fee; stablecoin issuers currently make most of their money from the yield they earn on the USD deposits that they hold," Carey told Decrypt. "Given the U.S.'s high rate environment, I see no reason why USDT keeps its redemption fee intact unless it is actually intended to reduce redemptions. If that's the case, it's short-sighted because it makes USDT's peg worse."



and then this:


Another catch is that users have to pay a non-refundable amount of $150 for “verification,” which, according to Tether, “is intended to ensure that only those who are serious about establishing an account apply.”


good luck with using tether everyone. you're going to need it if this thing depegs. 

I am trying other alternatives, I am hoping $USDC and $PYUSD (massively listed and now a holding of mine on bitget waiting for trading pairs) can overtake USDT. A token that always was in the eye of Hurricane for the lack of proof to have the Reserves.

[larry_vw_1955]

Not really, it took the DAI 3 weeks to stabilize its peg to the dollar. Look at the chart of the DAI from March 12 to March 30. DAI was constantly subject to fluctuations and almost daily de-peg. This is not a good indicator for a decentralized stablecoin.

yeah i agree it's not a good looking chart but it could have been worse, it could have dipped down below 90% for days in a row. from that chart it looks like it had one spike down and then right back up above 90.

I am trying other alternatives, I am hoping $USDC and $PYUSD (massively listed and now a holding of mine on bitget waiting for trading pairs) can overtake USDT. A token that always was in the eye of Hurricane for the lack of proof to have the Reserves.

thing i don't like about usdc is how they can just freeze your usdc by pressing a button. but i guess tether could do that too? but i havent heard of tether doing it. but i think it if was me, i would hold usdc rather than tether but they both probably are bad ideas.

i guess this story was just a bunch of BS:
since it was written in 2021 and i know tether isn't protected or insured against hacks. (or depeggings)

Stablecoin insurance firm Bridge Mutual to protect against possible Tether depegging
https://cointelegraph.com/news/stablecoin-insurance-firm-bridge-mutual-to-protect-against-possible-tether-depegging