Bitcoin
BTC$24 144.59

4.81%

Ethereum
ETH$1 782.89

5.48%

Tether
USDT$1.000147

0%

USD Coin
USDC$0.999830

0%

Binance Coin
BNB$330.09

4.75%

XRP
XRP$0.382895

2.83%

How "Stable" Really Are Stablecoins?


01 Jul 2022

#Tether

Over the past month, some major stablecoins completely lost their peg with the U.S. Dollar, raising concerns amongst investors about their safety. Stablecoins are designed to always remain tied one-to-one to the U.S. Dollar, marketing them as relatively safe assets in an otherwise highly volatile cryptocurrency market. However, a number of prominent stablecoins have fallen like dominoes, either due to failures in their algorithmic mechanism or simply not having the sufficient reserves to maintain its peg.

Two prominent coins, TerraUSD and Tether (USDT), sparked a meltdown in the cryptocurrency markets last month after both coins slipped away from their Dollar peg. The former saw its value collapse to zero over the course of a few days, while the latter dropped below parity.

Transparency is Lacking, Even in Crypto’s Safe Space

With mounting negative press around transparency in the crypto markets, MultiBank.io finds it necessary to report these cases and educate investors on the areas of poor industry practice. Stablecoins were once considered the safe-haven assets of crypto, but the paradigm around these assets is shifting. Issues around trust and transparency are also contributing to this. For example, Tether (USDT) has been widely criticized for lacking transparency over its holdings. The group was fined $41 million by the U.S. Commodity Futures Trading Commission in 2021 over misleading reports about its stated reserves.

For years, Tether assured investors and the broader cryptocurrency market that it had $1 in reserve to back every USDT token. That claim was wildly misleading, according to a statement from the Commodity Futures Trading Commission.

In contrast, security and transparency are things that MultiBank Group takes seriously. With the inbound launch of its innovative cryptocurrency exchange – MultiBank io – the group aims to change the perception of the industry, taking action to make the market a safer place for investors, both new and experienced.

The platform is designed to protect investors’ funds and provide a secure, transparent trading platform for its users. The company is adamant when it comes to providing the highest levels of security. For example, separated client accounts and the use of tier 1 banks are just some examples of the Groups commitment to client safety and security.


Related

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Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 75.6% 41 $24 144.59 4.81% 3.87% $461 543 407 981 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 65.6% 74 $1 782.89 5.48% 6.95% $217 296 985 720 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 96% 1 $1.000147 0% -0.01% $66 486 278 111 USDT 7 days price change
4 USD Coin (USDC) USDC USD Coin predictions 92.4% 1 $0.999830 0% -0.01% $54 200 367 960 USDC 7 days price change
5 Binance Coin (BNB) BNB Binance Coin predictions 72.4% 61 $330.09 4.75% 15.36% $53 255 098 429 BNB 7 days price change
6 XRP (XRP) XRP XRP predictions 79.6% 40 $0.382895 2.83% 1.31% $18 510 341 096 XRP 7 days price change
7 Cardano (ADA) ADA Cardano predictions 74.8% 52 $0.546286 5.64% 6.69% $18 431 164 380 ADA 7 days price change
8 Binance USD (BUSD) BUSD Binance USD predictions 95.2% 1 $1.000391 0.04% -0.02% $17 884 912 619 BUSD 7 days price change
9 Solana (SOL) SOL Solana predictions 74.8% 44 $43.33 8.04% 2.70% $15 091 398 958 SOL 7 days price change
10 Polkadot (DOT) DOT Polkadot predictions 69.2% 58 $9.33 9.56% 10.00% $10 306 573 155 DOT 7 days price change
11 Lido stETH (STETH) STETH Lido stETH predictions 92.8% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
12 Dogecoin (DOGE) DOGE Dogecoin predictions 84% 27 $0.071001 3.12% 3.59% $9 419 793 480 DOGE 7 days price change
13 HEX (HEX) HEX HEX predictions 70% 62 $0.054298 8.25% 10.52% $9 415 859 203 HEX 7 days price change
14 Avalanche (AVAX) AVAX Avalanche predictions 69.2% 69 $29.69 12.41% 26.57% $8 446 616 605 AVAX 7 days price change
15 Polygon (MATIC) MATIC Polygon predictions 64% 77 $0.946739 4.21% 4.32% $7 606 860 763 MATIC 7 days price change

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