Bitcoin
BTC$65 780.00

-1.00%

Ethereum
ETH$3 522.63

-0.86%

Tether
USDT$0.999278

0%

Binance Coin
BNB$598.52

-1.19%

Solana
SOL$143.67

-0.88%

USD Coin
USDC$1.000083

0.02%

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

Tether commercial paper exposure now under $50M
Tether commercial paper exposure now under $50M
Tether aims to decrease commercial paper backing of USDT to zero
Tether aims to decrease commercial paper backing of USDT to zero
Tether’s attestation report shows commercial paper holdings cut by 21%
Tether’s attestation report shows commercial paper holdings cut by 21%
Tether reveals plans to make Lugano the Bitcoin capital of Europe
Tether reveals plans to make Lugano the Bitcoin capital of Europe
USDT is minted for crypto as $1M bounty offered to unpick reserves
USDT is minted for crypto as $1M bounty offered to unpick reserves
Tether fires back against report it is using reserves for investments and making crypto-backed loans
Tether fires back against report it is using reserves for investments and making crypto-backed loans
Tether promises an audit in months as Paxos claims USDT is not a real stablecoin
Tether promises an audit in months as Paxos claims USDT is not a real stablecoin
Stablecoin inflows to exchanges dip as traders watch Bitcoin from the sidelines
Stablecoin inflows to exchanges dip as traders watch Bitcoin from the sidelines
Tether mints more coins to break $60 billion market cap
Tether mints more coins to break $60 billion market cap

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 88.8% 15 $65 780.00 -1.00% -5.30% $1 296 753 454 840 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 87.2% 22 $3 522.63 -0.86% -4.11% $423 258 896 956 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 96% 1 $0.999278 0% -0.04% $112 479 678 883 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 82.4% 27 $598.52 -1.19% -6.50% $88 331 656 998 BNB 7 days price change
5 Solana (SOL) SOL Solana predictions 76.4% 37 $143.67 -0.88% -9.90% $66 347 794 961 SOL 7 days price change
6 USD Coin (USDC) USDC USD Coin predictions 90% 3 $1.000083 0.02% 0.01% $32 464 037 571 USDC 7 days price change
7 XRP (XRP) XRP XRP predictions 80% 31 $0.498778 0.58% 0.39% $27 717 304 414 XRP 7 days price change
8 Dogecoin (DOGE) DOGE Dogecoin predictions 71.6% 58 $0.134306 -1.02% -7.30% $19 440 284 288 DOGE 7 days price change
9 Toncoin (TON) TON Toncoin predictions 69.2% 62 $7.77 -2.45% 9.47% $18 914 439 860 TON 7 days price change
10 Cardano (ADA) ADA Cardano predictions 80% 35 $0.404445 -2.38% -9.42% $14 451 089 302 ADA 7 days price change
11 SHIBA INU (SHIB) SHIB SHIBA INU predictions 54.4% 94 $0.000020 -3.53% -13.87% $11 762 841 077 SHIB 7 days price change
12 Avalanche (AVAX) AVAX Avalanche predictions 70.8% 57 $28.62 -4.61% -12.42% $11 256 669 286 AVAX 7 days price change
13 Lido stETH (STETH) STETH Lido stETH predictions 96% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
14 Wrapped TRON (WTRX) WTRX Wrapped TRON predictions 91.6% 12 $0.116726 1.19% 0.30% $10 204 527 594 WTRX 7 days price change
15 TRON (TRX) TRX TRON predictions 87.6% 12 $0.116740 1.26% 0.35% $10 188 668 287 TRX 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2024 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.