The "stable" coins used to route around US laws are starting to lose their peg. When Tether goes, it'll all drop at least 90%, if not 99.95%, as all the margins on the offshore exchanges get called.
I think the point is a stablecoin's value is in being stable. Otherwise it's just another coin. So if a stablecoin can't retain its peg, then it has no practical utility and it's effectively worth zero.
Or it's an indication of how many people have sunk cash into the coin and are stuck HODLing in the hopes of it recovering, which... makes it just like any other coin.
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There's no need for action, just wait it out.
The "stable" coins used to route around US laws are starting to lose their peg. When Tether goes, it'll all drop at least 90%, if not 99.95%, as all the margins on the offshore exchanges get called.
There's no middle ground with stablecoins, they're either worth $1 or zero.
This isn’t quite true. Even algorithmic stable coins can hit $0.99 and $1.01
Hmm? Terra is currently trading at $0.91. https://finance.yahoo.com/quote/UST-USD
I think the point is a stablecoin's value is in being stable. Otherwise it's just another coin. So if a stablecoin can't retain its peg, then it has no practical utility and it's effectively worth zero.
It's effectively worth what you can sell it for, so 0.91USD for Terra.
This reflects a market consensus that there's about an 80% chance that it won't regain the peg, if you think about it.
Or it's an indication of how many people have sunk cash into the coin and are stuck HODLing in the hopes of it recovering, which... makes it just like any other coin.
I'm sorry for the ambiguity... I was talking about Bitcoin dropping 90%+, Tether obviously could hit zero.