Do you have the right to redeem your stablecoin?

do-you-have-the-right-to-redeem-your-stablecoin?

Spoiler: No, stablecoin issuers do not guarantee the legal right for users to claim fiat currency back. Stablecoins are often discussed with regard to their “stability.” It is usually questioned whether a stablecoin is sufficiently backed with money or other assets. Undoubtedly, it is a very important aspect of stablecoin value. But, does it make … Read more

Altcoin prices briefly rebounded, but derivatives metrics predict worsening conditions

altcoin-prices-briefly-rebounded,-but-derivatives-metrics-predict-worsening-conditions

Declining demand for Tether and negative futures premiums for altcoins reflect a growing disinterest from crypto investors. On May 12, the total crypto market capitalization reached its lowest close in 10 months and the metric continues to test the $1.23 trillion support level. However, the following seven days were reasonably calm while Bitcoin (BTC) gained … Read more

Tether Cuts 17% Of Its Commercial Paper Holdings Over Q1 2022

tether-cuts-17%-of-its-commercial-paper-holdings-over-q1-2022

As per the official report published on May 18, Tether, the issuer of the world’s most used stablecoin, USDT, has cut 17% of its commercial paper holdings and increased United States Treasury bills with this reserve amount to back its stablecoin, USDT. Tether made the reduction over Q1 2022 and continues for a further 20% … Read more

UST aftermath: Is there any future for algorithmic stablecoins?

ust-aftermath:-is-there-any-future-for-algorithmic-stablecoins?

The quest continues for the perfect “stand in” for the U.S. dollar. But, UST’s crash suggests that algo stables may be “inherently fragile.” TerraUSD (UST) is an algorithmic stablecoin that is pegged at $1.00. But, on the evening of May 19, it was trading for $0.083. This isn’t supposed to happen, of course, but last … Read more

Algorithmic, fiat-backed or crypto-backed: What’s the best stablecoin type?

algorithmic,-fiat-backed-or-crypto-backed:-what’s-the-best-stablecoin-type?

DAI has been around since 2017, which no algo stablecoins has ever matched, and it’s unlikely to share the fate of UST. TerraUSD (UST) flipping BinanceUSD (BUSD) for the third spot in the market capitalization list didn’t last long. The once-mighty stablecoin that powers the entire Terra ecosystem finds itself reduced to “Terra is more … Read more

Tether CTO: Terra wasn’t a rug pull, it was a poorly designed ‘castle of cards’

tether-cto:-terra-wasn’t-a-rug-pull,-it-was-a-poorly-designed-‘castle-of-cards’

“It was clear to me, it was clear to many that I know that it was a bad idea,” said Tether and Bitfinex CTO Paolo Ardoino. Tether and Bitfinex CTO Paolo Ardoino said that the Terra (LUNA) project was not intended to be a rug pull, but was simply “poorly designed.” Speaking on the Terra … Read more

Tether reports 17% decrease in commercial paper holdings over Q1 2022

tether-reports-17%-decrease-in-commercial-paper-holdings-over-q1-2022

“This latest attestation further highlights that Tether is fully backed and that the composition of its reserves is strong, conservative and liquid,” said Paolo Ardoino. USDT Stablecoin issuer Tether (USDT) has reported it cut its reserves allocation to commercial paper investments and increased that of United States Treasury bills over the first quarter of 2022. … Read more

Tether launches crypto and blockchain education program in Switzerland

tether-launches-crypto-and-blockchain-education-program-in-switzerland

“It is essential that educational institutions are put into place to help better inform not only traders and investors but future business owners,” said Paolo Ardoino. Switzerland’s southern city of Lugano will host a blockchain- and cryptocurrency-focused school as part of a partnership between the local government and Tether. In a Thursday announcement, Tether and … Read more

Was Terra’s UST cataclysm the canary in the algorithmic stablecoin coal mine?

was-terra’s-ust-cataclysm-the-canary-in-the-algorithmic-stablecoin-coal-mine?

After an earthquake, there are always aftershocks. The collapse of UST could be a sign that other stablecoins are also critically flawed. The past week has not been an easy one. After the collapse of the third-largest stablecoin (UST) and what used to be the second-largest blockchain after Ethereum (Terra), the depeg contagion seems to … Read more

Analysts assess the aftermath of the Terra (LUNA) collapse | Cointelegraph interview

analysts-assess-the-aftermath-of-the-terra-(luna)-collapse-|-cointelegraph-interview

Mike McGlone, senior commodity strategist at Bloomberg, and financial commentator Frances Coppola discuss the implications of last week’s Terra collapse in Cointelegraph’s latest interview. Financial commentator Frances Coppola is convinced that algorithmic stablecoins such as TerraUSD (UST) will always be vulnerable to sudden collapses, no matter how much the technology improves.  “They can improve their … Read more