Tether Lost its Peg Amid Ongoing Stablecoin Crisis

Tether (USDT), the world’s largest stablecoin, fell as low as $0.95. According to CoinMarketCap data, the stablecoin has recovered part of its value but is still trading at $0.98. It is worth more than $81 billion on the stock market. Following the implosion of Terra’s stablecoin UST and a severe 10% decline in market leader Bitcoin, Tether’s price has been unpredictable. Tether Untethered: World’s Biggest Stablecoin Loses $1 Peg As Crypto Market Crashes Tether's USDT, which is meant to be pegged to $1, dropped as low as 94 cents on Thursday. https://t.co/HpZNSAHVDH — BitRss News (@RssBit) May 12, 2022 Last weekend, UST, the third-largest stablecoin, was initially de-pegged by a few cents. However, its demise has been massive since then. On May 11, 2022, it momentarily plummeted to $0.2998, a 71 per cent drop from its dollar peg. According to CoinMarketCap, the coin is currently trading at $0.62.Unlike Terra, which maintains its $1 peg by trading a paired token called Luna, Tether claims that its tokens are backed by real money, even though the company has been chastised for its lack of transparency and was fined $41 million by the US Commodity Futures Trading Commission in 2021 for making false statements about its reserves. Tether’s CTO, Paolo Ardoino, claimed that the company is honouring $1 USDT redemptions and that the company has handled more than $300 million in the last 24 hours “without breaking a sweat.” In the typic...