Stable coins are not so STABLE

UST is not the first stable coin that has failed. There has been a lot of other stable coins that has previously failed. Don’t be fooled by the name “stable-coin”. It is always compared with banks giving so less returns and making fun of dollar.

And now guys there might be something more coming to us. Check out USDT it is currently trading at 0.98 and that is not looking good at all. If USDT loses its peg – We are doomed. And it is a ticking time-bomb. It will fail sooner or later. So stay strong and do not invest everything in crypto. It’s not fun when you see people putting up suicidal posts. It’s depressing and sad. Please act cautiously!

Edit: USDT to 0.95

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46 thoughts on “Stable coins are not so STABLE”

  1. I’m going to bed now. I’m going to come back to this comment in 12 hours. Let’s see if crypto is still standing by then.

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  2. The situation is much better for Tether than other algorithmic stablecoins. Tether actually has _a lot of_ backing assets that can be sold to restore the peg. Those backing assets just take a non-zero amount of time to convert into liquid cash and get onto exchanges so the sell pressure is likely temporarily too high for them to keep up.

    However there’s no death spiral situation like there was for UST, worst case scenario everyone takes a significant haircut, but even if there’s less backing assets than Tether claim there’s likely still enough for Tether to be worth significantly more than zero.

    Or they could be wildly undercollateralized and the whole thing could unravel, we’ll have to see.

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  3. USDT depegging at 0.97. I think it’s time that it’s going to finally fall. Hopefully people go to jail for fraud.

    I’d hold off on any purchases and see if we go down to 4 digits over the next month.

    Long term I’m sure BTC will reach all time highs, but it’s going to take a big hit.

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  4. USDT does show this level of uncertainity. While it is still concerning, look at it this way, people are selling a lot during this time. So I would just wait a few hours before concluding that it is depegged entirely.

    I could also be numb to it since seeing UST who knows. I am just trying not to do anything stupid like cashing out between all this panic.

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  5. quickly change all your USDT to USDC before shit hits real hard.

    this is not normal and not suppose to happen! Pity those in the US who are asleep now!

    updated price: 0.97 USDT/USD

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  6. Other stablecoins in the market are trading at a premium against USDT. Binance USD (BUSD) and USD Coin (USDC) are trading at $1.08 and $1.09, respectively, via trading pairs on Binance.

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  7. I don’t want to see anybody lose money….but I want all the trash blown out of the space. So ready for it

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  8. Can someone tell me why use stable coins when you can sell to USD? Do some have no access to USD on their exchange?

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  9. Tether is backed by bullshit. Fortunately bullshit is infinite.

    The real backing is in the faith and goodwill of all CEX exchanges that back USDT, knowing that if one fails to support the entire network comes crashing down as there is no safety in crypto

    Sadly transparency doesn’t help here. Central banks know the less the market knows about their reserves the less attacks they will face for on their currencies. UST reserves were well known and transparent, which really helps to identify the volume of attack needed to bring a peg down

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  10. So let’s talk about the other stable, USDC. Circle’s financial reports allege its backed by real world FIAT. But is it really invincible?

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  11. Hi new to this sub- I have a bit in Gemini Earn- it’s still holding at $1. Should I pull out of Gemini as well?

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  12. “stable coin” does not mean “is stable” but “tries to be stable”

    If you hit the finish-line last on a marathon, you’re still a runner… just not a very good one.

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  13. Would like more discussion on what will happen to stables with regulation, esp in US. Obviously to me at least this seems like a coordinated attack. PROS: prevent drops like this? CONS: centralization?

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  14. USDT always goes to 98 cents in the mega crashes don’t worry it will bounce back, it hit like 96 cents during the 2018 crash.

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