Bitcoin
BTC$16 887.48

2.34%

Ethereum
ETH$1 267.25

4.15%

Tether
USDT$0.999939

0.02%

Binance Coin
BNB$300.66

-0.80%

USD Coin
USDC$1.000021

-0.01%

Binance USD
BUSD$0.999767

-0.06%

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 59.6% 81 $16 887.48 2.34% 1.86% $324 589 061 054 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 60% 79 $1 267.25 4.15% 7.97% $155 078 415 426 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 96% 1 $0.999939 0.02% 0.08% $65 358 715 078 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 68.4% 67 $300.66 -0.80% 1.33% $48 097 434 673 BNB 7 days price change
5 USD Coin (USDC) USDC USD Coin predictions 92.8% 1 $1.000021 -0.01% -0.01% $43 287 433 583 USDC 7 days price change
6 Binance USD (BUSD) BUSD Binance USD predictions 92.8% 1 $0.999767 -0.06% -0.08% $22 160 194 395 BUSD 7 days price change
7 XRP (XRP) XRP XRP predictions 67.2% 66 $0.400661 2.12% 6.43% $20 149 235 909 XRP 7 days price change
8 Dogecoin (DOGE) DOGE Dogecoin predictions 60.8% 85 $0.105142 1.26% 28.54% $13 949 306 353 DOGE 7 days price change
9 Cardano (ADA) ADA Cardano predictions 62.8% 81 $0.315019 1.23% -0.32% $10 849 785 898 ADA 7 days price change
10 Lido stETH (STETH) STETH Lido stETH predictions 91.2% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
11 Polygon (MATIC) MATIC Polygon predictions 66.8% 72 $0.871554 3.73% 0.57% $7 612 428 144 MATIC 7 days price change
12 Polkadot (DOT) DOT Polkadot predictions 68% 67 $5.40 2.10% 0.18% $6 162 661 283 DOT 7 days price change
13 Dai (DAI) DAI Dai predictions 96% 1 $1.000265 0.02% -0.01% $5 654 331 094 DAI 7 days price change
14 Litecoin (LTC) LTC Litecoin predictions 62.4% 74 $78.45 2.21% -0.34% $5 626 987 998 LTC 7 days price change
15 Wrapped TRON (WTRX) WTRX Wrapped TRON predictions 68.4% 68 $0.053848 0.30% 5.39% $5 475 040 788 WTRX 7 days price change

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