{"id":16562,"date":"2022-05-12T13:56:46","date_gmt":"2022-05-12T13:56:46","guid":{"rendered":"http:\/\/egrowonline.com\/?p=16562"},"modified":"2022-05-12T13:56:46","modified_gmt":"2022-05-12T13:56:46","slug":"heres-everything-you-need-to-know-about-terrausd-tether-and-other-stablecoins","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=16562","title":{"rendered":"Here\u2019s everything you need to know about TerraUSD, Tether and other stablecoins"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div data-v-2a0745c6=\"\">\n<p>The crypto winter could be claiming more casualties among the stablecoin camp. The depegging of TerraUSD (UST) on May 10 <a target=\"_blank\" href=\"https:\/\/cointelegraph.com\/news\/terra-contagion-leads-to-80-decline-in-defi-protocols-associated-with-ust\" rel=\"noopener\">triggered market selloffs<\/a>, and now Tether (<a target=\"_blank\" href=\"https:\/\/cointelegraph.com\/tether-price-index\" rel=\"noopener\">USDT<\/a>) appears to be losing its footing. It has slipped against the U.S. dollar.<\/p>\n<p>The algorithmic stablecoin UST, as the name implies, is algorithmically backed. Terra (LUNA), the ecosystem&#8217;s corresponding token,\u00a0<a target=\"_blank\" href=\"https:\/\/cointelegraph.com\/news\/terra-rescue-plan-still-at-large-as-luna-falls-below-5-bitcoin-spikes-to-138k-in-ust\" rel=\"noopener\">sank over 95%<\/a> since May 10, while UST continues to languish around the $0.50 mark.<\/p>\n<p>Cointelegraph\u2019s resident experts shared their explanations for why UST crashed in a <a target=\"_blank\" href=\"https:\/\/cointelegraph.com\/news\/why-did-terra-luna-and-ust-crash-find-out-on-the-market-report\" rel=\"noopener\">Market Report video yesterday<\/a>. The plan for the TerraLabs\u2019 <a target=\"_blank\" href=\"https:\/\/cointelegraph.com\/news\/terra-to-burn-1-4b-ust-and-stake-240m-luna-to-stop-the-bleeding\" rel=\"noopener\">algo stablecoin continues to roll out<\/a>\u00a0but the stablecoin is struggling.\u00a0<\/p>\n<div class=\"jeg_video_container jeg_video_content\"><iframe loading=\"lazy\" title=\"The LUNA and UST crash \u2014 WTF happened? Will they recover? | The Market Report\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/8dzMOuEjFIY?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<p>Data from <a target=\"_blank\" href=\"https:\/\/subscriptions.cointelegraph.com\/signup\/\" rel=\"noopener\">Cointelegraph Markets Pro<\/a> confirmed that various stablecoins have shown greater volatility than usual. The world\u2019s largest stablecoin, Tether USDT traded under $0.99, Gemini GUSD exceeded $1 while USD Coin (<a target=\"_blank\" href=\"https:\/\/cointelegraph.com\/usdc-price-index\" rel=\"noopener\">USDC<\/a>) also appreciated.\u00a0<\/p>\n<p>Paolo Ardoino, CTO of Bitfinex and Tether, sheds light on the difference between stablecoins and their algorithmic counterparts:<\/p>\n<blockquote><p>&#8220;If you want to do an algorithmic stablecoin it has to be 300% backed by solid crypto assets\u2013not 105 or 110% or even less. That does not make sense.\u201d<\/p><\/blockquote>\n<p>For UST to work, Ardoino shared that you would need 3x the investment, or over $50 million:\u00a0\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">More sauce <a target=\"_blank\" href=\"https:\/\/t.co\/w51pFcLJey\" rel=\"noopener\">https:\/\/t.co\/w51pFcLJey<\/a><\/p>\n<p>\u2014 Paolo Ardoino (@paoloardoino) <a target=\"_blank\" href=\"https:\/\/twitter.com\/paoloardoino\/status\/1524690092371202050?ref_src=twsrc%5Etfw\" rel=\"noopener\">May 12, 2022<\/a><\/p><\/blockquote>\n<p>In earlier tweets, Ardoino <a target=\"_blank\" href=\"https:\/\/twitter.com\/paoloardoino\/status\/1524625162859130882?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1524625162859130882%7Ctwgr%5E%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fusdt-dollar-peg-wobbles-as-markets-continue-to-struggle-tether-cto-weighs-in\" rel=\"noopener nofollow\">reminded<\/a> crypto enthusiasts that \u201cTether is honoring USDT redemptions at 1$&#8221;\u2013as he spread calm among the industry. For crypto veterans such as Whale Panda, the distinction between stablecoins is clear cut; the Tether FUD is \u201cpeak FUD\u201d:<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">People confusing <a target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24USDT&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" rel=\"noopener\">$USDT<\/a> and <a target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24UST&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" rel=\"noopener\">$UST<\/a> and panicking.<br \/>People don&#8217;t understand the difference between an under collaterized algorithmic stablecoin and a backed stablecoin.<br \/>Panic dumping <a target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24USDT&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" rel=\"noopener\">$USDT<\/a> for <a target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24USDC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" rel=\"noopener\">$USDC<\/a> and plain old <a target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24USD&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" rel=\"noopener\">$USD<\/a>.<\/p>\n<p>Peak fud time.<\/p>\n<p>Warning: this post will attract &#8220;Tether truthers&#8221;<\/p>\n<p>\u2014 WhalePanda (@WhalePanda) <a target=\"_blank\" href=\"https:\/\/twitter.com\/WhalePanda\/status\/1524638443103567878?ref_src=twsrc%5Etfw\" rel=\"noopener\">May 12, 2022<\/a><\/p><\/blockquote>\n<p>The price of USDT has recovered from its very brief dip to $0.95 this morning, but it is still yet to reach dollar parity. In recent developments, Tether has planned to <a target=\"_blank\" href=\"https:\/\/cointelegraph.com\/news\/tether-to-move-over-1b-usdt-from-tron-to-ethereum-and-avalanche\" rel=\"noopener\">move 1 billion USDT from Tron to Ethereum and Avalanche<\/a>. This will not change the total supply of Tether, the company said in a <a target=\"_blank\" href=\"https:\/\/twitter.com\/Tether_to\/status\/1524652531170881537?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1524652531170881537%7Ctwgr%5E%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Ftether-to-move-over-1b-usdt-from-tron-to-ethereum-and-avalanche\" rel=\"noopener nofollow\">tweet.\u00a0<\/a><\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-05\/7b71edb9-0420-495b-a452-5c4744fa6a87.png\" \/><figcaption style=\"text-align: center\">Tether dip to $0.95 at 08:15 UTC. Source: Coinmarketcap\u00a0<\/figcaption><\/figure>\n<p>Samson Mow, CEO of Jan3 and <a target=\"_blank\" href=\"https:\/\/cointelegraph.com\/news\/samson-mow-introduces-new-nation-state-adoption-for-crypto-in-bitcoin-2022\" rel=\"noopener\">hyperbitcoinization pioneer<\/a> also rallied the troops behind USDT:\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">USDt isn\u2019t going to lose its peg. Know when players are just trying to induce panic.<\/p>\n<p>\u2014 Samson Mow (@Excellion) <a target=\"_blank\" href=\"https:\/\/twitter.com\/Excellion\/status\/1524648119329198081?ref_src=twsrc%5Etfw\" rel=\"noopener\">May 12, 2022<\/a><\/p><\/blockquote>\n<p><strong><em>Related:\u00a0<a target=\"_blank\" href=\"https:\/\/cointelegraph.com\/news\/ethereum-whales-get-busy-as-transactions-hit-highest-point-since-january\" rel=\"noopener\">Ether whales get busy as transactions hit highest point since January<\/a><\/em><\/strong><\/p>\n<p>Since the Castle Island Ventures&#8217; Nic Carter made light of the stablecoin saga, joking about a stable coin even he is set to attend:\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">might be a bad time&#8230; but are we still doing this next week? <a target=\"_blank\" href=\"https:\/\/t.co\/JyjbpagK8a\" rel=\"noopener\">pic.twitter.com\/JyjbpagK8a<\/a><\/p>\n<p>\u2014 nic carter (@nic__carter) <a target=\"_blank\" href=\"https:\/\/twitter.com\/nic__carter\/status\/1524503951860809728?ref_src=twsrc%5Etfw\" rel=\"noopener\">May 11, 2022<\/a><\/p><\/blockquote>\n<p>USDT has recovered to within 2 basis points of a dollar at the time of writing. Plus, an <a target=\"_blank\" href=\"https:\/\/tether.to\/en\/tether-continues-to-honour-all-redemptions-from-verified-customers-during-market-volatility-on-track-to-process-2bn-today\/\" rel=\"noopener nofollow\">article<\/a> shared by the Tether team explained they&#8217;re &#8220;on track to process $2 billion today.&#8221;\u00a0 Danger averted.<\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/untethered-here-s-everything-you-need-to-know-about-terrausd-tether-and-other-stablecoins\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The crypto winter could be claiming more casualties among the stablecoin camp. The depegging of TerraUSD (UST) on May 10 triggered market selloffs, and now Tether (USDT) appears to be losing its footing. It has slipped against the U.S. dollar. The algorithmic stablecoin UST, as the name implies, is algorithmically backed. Terra (LUNA), the ecosystem&#8217;s [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":16563,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[38],"tags":[164,1221,7992,144],"class_list":["post-16562","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-heres","tag-stablecoins","tag-terrausd","tag-tether"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2022\/05\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvNGUxOGJkOTAtNWUxMC00NjEzLTgxMjAtZjViZDk5MjVjZDg5LmpwZw.jpg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/16562","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16562"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/16562\/revisions"}],"predecessor-version":[{"id":16564,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/16562\/revisions\/16564"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/16563"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16562"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16562"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16562"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}