Good-Guy
VIP Contributor
The stablecoins are considered as a reliable asset due to the fact their value is "pegged" to the dollar, which means that they just cannot simply fluctuate in value. Moreover, even if they fluctuate, they fluctuate in value only a bit. For example, they might fluctuate to two percent or three percent of their total value. However, the recent crash of the Terra USD has made people suffer from heart problems because people were never expecting that the stable coins would fluctuate to this extent. The value of Terra USD is now almost nothing compared what it was a week ago. This has led many people to question the validity of stablecoins. What's even more shocking is the fact that after the crash of Terra USD, many other so-called "Stablecoins" have lost stability and now even they are also declining hugely.
For example, the DEI stable coin went down from $0.98 to $0.62. The lowest point it hit was around $0.52. This means that there is something really bad happening with stablecoins that is making them lose their "stability". I am wondering what might be the future of such kind of stablecoins like Tether and USDCoin. Many people claim that Tether is backed up by actual dollars, but who knows? So what is the reliability of such so-called "stablecoins" when they are not stable like the actual fiat currency?
For example, the DEI stable coin went down from $0.98 to $0.62. The lowest point it hit was around $0.52. This means that there is something really bad happening with stablecoins that is making them lose their "stability". I am wondering what might be the future of such kind of stablecoins like Tether and USDCoin. Many people claim that Tether is backed up by actual dollars, but who knows? So what is the reliability of such so-called "stablecoins" when they are not stable like the actual fiat currency?
