Not all stablecoins are the same. As fear caused by LUNA/UST spreads across the industry, Tether CTO Paulo Ardoino assures USDT holders that over 300 million tokens had been redeemed at their $1 peg over the past 24 hours.
Cointelegraph reached out to Ardoino to ascertain if there is cause for concern in USDT’s ability to maintain its $1.00 peg in light of recent events. Ardoino stressed that USDT has maintained its stability through multiple black swan events and highly volatile market conditions and has never refused redemptions:
“Tether continues to process redemptions normally amid some expected market panic following yesterday’s market. In spite of that, Tether has not and will not refuse redemptions to any of its customers, which has always been its practice.” With fear, uncertainty and doubt at levels reminiscent of the 2018 Bitcoin market crash, Ardoino offered perspective given the technical differences between USDT and algorithmic stablecoins:
“Unlike these algorithmic stablecoins, Tether holds a strong, conservative and liquid portfolio that consists of cash & cash equivalents, such as short-term treasury bills, money market funds and commercial paper holdings from A-2 and above rated issuers.” The ongoing Terra /UST situation may well have dented confidence in stablecoins’ and respective platforms’ ability to redeem token swaps for their $1.00 peg. Despite that, Ardoino believes that stablecoins will continue to be a vital cog in the cryptocurrency space. “I do not believe that trust was ever lost for centralized stablecoin users,” he said, adding: “There will always be a market for stablecoins as they present an opportunity for traders to interact with the larger crypto ecosystem.
Argentina Últimas Noticias, Argentina Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Tether (USDT) to Enlist Third-Party Help to Transition from TRC20 to Ethereum and AvalancheTether announces $1.2 billion 'chain swap' from TRC20 with third-party USDT Ethereum ERC20 Avalanche AVAX Swap Cryptocurency blockchain
Leer más »
Tether (USDT) Loses Peg As Mayhem in Stablecoin ContinuesTether (USDT) lost its dollar parity today following the recent drama with Terra's UST stablecoin.
Leer más »
Tether to move over 1B USDT from Tron to Ethereum and AvalancheTether’s chief technology officer paoloardoino assured traders that USDT is not like algorithmic stablecoins such as UST and has a “strong, conservative and liquid portfolio that consists of cash and cash equivalents.”
Leer más »
Lugano Ties Its Crypto City Dream to TetherLugano’s Plan B initiative is a way to put down a “red carpet” for companies and cryptocurrency fans who want to flock to the Swiss city. Via WIREDUK
Leer más »
Lugano Ties Its Crypto City Dream to TetherThe Swiss city is on a quest to make crypto mainstream with an unusual partnership.
Leer más »
Bitcoin falls below $27K to December 2020 lows as Tether stablecoin peg slips under 99 centsBitcoin falls out of its macro range as BTC price reflects fresh woes for stablecoins including Tether.
Leer más »