USDT

Tether's USDT stablecoin is suffering from UST's ongoing crash. USDT briefly hit $0.95 today and is still trading below its peg.

Tether, the world's largest stablecoin, broke below its $1 peg Thursday amid panic in the crypto market. The token sank to as low as 98 cents at around 3:30 ...

Tether has since reduced the amount of commercial paper in its reserves and says it plans to lower its holdings further over time. Tether and USDC, the two biggest stablecoins, are meant to be backed by a sufficient amount of money held in a reserve to ensure depositors can receive their dollars when they want to make a withdrawal. But there have long been concerns about whether tether actually has enough assets to back up its intended $1 peg.

LUNA/UST debacle leads to discrepancies in BTC-stablecoin trading pairs across global cryptocurrency exchanges.

The system failed when the price of UST fell below its $1.00 peg, leading to a massive amount of arbitrage trading with traders burning UST for $1.00 worth of LUNA, which was then sold for a profit. The rest is history as Terra’s co-founder Do Kwon tries to remedy a bleak situation. The relationship between the two was fairly straightforward: Users could exchange $1.00 worth of LUNA for 1 UST or vice versa. “I do not believe that trust was ever lost for centralized stablecoin users,” he said, adding: “There will always be a market for stablecoins as they present an opportunity for traders to interact with the larger crypto ecosystem.” Ardoino stressed that USDT has maintained its stability through multiple black swan events and highly volatile market conditions and has never refused redemptions: Stablecoin Tether ( USDT) showed signs of stress, as USDT/USD traded under $0.99 on major exchanges.