{"id":12369,"date":"2022-05-12T14:33:16","date_gmt":"2022-05-12T14:33:16","guid":{"rendered":"https:\/\/harchi90.com\/heres-everything-you-need-to-know-about-terrausd-tether-and-other-stablecoins\/"},"modified":"2022-05-12T14:33:16","modified_gmt":"2022-05-12T14:33:16","slug":"heres-everything-you-need-to-know-about-terrausd-tether-and-other-stablecoins","status":"publish","type":"post","link":"https:\/\/harchi90.com\/heres-everything-you-need-to-know-about-terrausd-tether-and-other-stablecoins\/","title":{"rendered":"Here&#8217;s everything you need to know about TerraUSD, Tether and other stablecoins"},"content":{"rendered":"<div data-v-2a0745c6=\"\">\n<p>The crypto winter could be claiming more casualties among the stablecoin camp.  The de-pegging of TerraUSD (UST) on Tuesday triggered market sell-offs, and now Tether (USDT) appears to be losing its footing, having slipped against the US dollar.<\/p>\n<p>The algorithmic stablecoin UST is, as the name implies, algorithmically backed.  LUNA, the ecosystem&#8217;s corresponding token, has sunk over 95% since Tuesday, while UST continues to languish around the $ 0.50 mark.<\/p>\n<p>Cointelegraph&#8217;s resident experts shared their explanations for why UST crashed in a special edition of \u201cThe Market Report\u201d yesterday.  The plan for Terraform Labs&#8217; algorithmic stablecoin continues to roll out, but UST is still struggling.<\/p>\n<div class=\"ast-oembed-container\"><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\" allowfullscreen><\/iframe><\/div>\n<p>Data from Cointelegraph Markets Pro confirmed that various stablecoins have shown greater volatility than usual: USDT, the world&#8217;s largest stablecoin, traded under $ 0.99, Gemini Dollar (GUSD) exceeded $ 1, and USD Coin (USDC) also appreciated.<\/p>\n<p>Paolo Ardoino, chief technology officer of Bitfinex and Tether, shed some light on the difference between asset-backed stablecoins and their algorithmic counterparts in a conversation with Scott Melker:<\/p>\n<blockquote><p>&#8220;If you want to do an algorithmic stablecoin, for example, it has to be 300% backed by solid assets, solid crypto assets &#8211; not 105%, or 110%, or even less. [&#8230;] That does not make sense. &#8220;<\/p><\/blockquote>\n<p>Ardoino shared that for UST to work, it would need 3x the investment, or over $ 50 billion:  <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">More sauce https:\/\/t.co\/w51pFcLJey<\/p>\n<p>&#8211; Paolo Ardoino (@paoloardoino) <a rel=\"nofollow noopener\" href=\"https:\/\/twitter.com\/paoloardoino\/status\/1524690092371202050?ref_src=twsrc%5Etfw\" target=\"_blank\">May 12, 2022<\/a><\/p><\/blockquote>\n<p>In earlier tweets, Ardoino <a rel=\"nofollow noopener\" 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\" target=\"_blank\">reminded<\/a> crypto enthusiasts that \u201cTether is honoring USDt redemptions at 1 $\u201d as he spread calm among the industry.  For crypto veterans such as Whale Panda, the distinction between stablecoins is clear cut: the Tether FUD (fear, uncertainty and doubt) is &#8220;peak fud&#8221;:<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">People confusing <a rel=\"nofollow noopener\" href=\"https:\/\/twitter.com\/search?q=%24USDT&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" target=\"_blank\">$ USDT<\/a> and <a rel=\"nofollow noopener\" href=\"https:\/\/twitter.com\/search?q=%24UST&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" target=\"_blank\">$ 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 rel=\"nofollow noopener\" href=\"https:\/\/twitter.com\/search?q=%24USDT&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" target=\"_blank\">$ USDT<\/a> for <a rel=\"nofollow noopener\" href=\"https:\/\/twitter.com\/search?q=%24USDC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" target=\"_blank\">$ USDC<\/a> and plain old <a rel=\"nofollow noopener\" href=\"https:\/\/twitter.com\/search?q=%24USD&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" target=\"_blank\">$ USD<\/a>.<\/p>\n<p>Peak fud time.<\/p>\n<p>Warning: this post will attract &#8220;Tether truthers&#8221;<\/p>\n<p>&#8211; WhalePanda (@WhalePanda) <a rel=\"nofollow noopener\" href=\"https:\/\/twitter.com\/WhalePanda\/status\/1524638443103567878?ref_src=twsrc%5Etfw\" target=\"_blank\">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 still has yet to reach dollar parity.  In recent developments, Tether plans to move 1 billion USDT from Tron to Ethereum and Avalanche.  This will not change the total supply of Tether, the company <a rel=\"nofollow noopener\" href=\"https:\/\/twitter.com\/Tether_to\/status\/1524652531170881537\" target=\"_blank\">said<\/a> in a tweet. <\/p>\n<figure><figcaption style=\"text-align: center;\">Tether dipped to $ 0.95 at 8:15 am UTC.  Source: CoinMarketCap <\/figcaption><\/figure>\n<p>Samson Mow, CEO of Jan3 and a hyperbitcoinization pioneer, also rallied the troops behind USDT: <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">USDt isn&#8217;t going to lose its peg.  Know when players are just trying to induce panic.<\/p>\n<p>&#8211; Samson Mow (@Excellion) <a rel=\"nofollow noopener\" href=\"https:\/\/twitter.com\/Excellion\/status\/1524648119329198081?ref_src=twsrc%5Etfw\" target=\"_blank\">May 12, 2022<\/a><\/p><\/blockquote>\n<p><strong><em>Related: Ether whales get busy as transactions hit highest point since January<\/em><\/strong><\/p>\n<p>Castle Island Ventures&#8217; Nic Carter made light of the stablecoin saga, joking about a stablecoin event he is set to attend:<\/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 rel=\"nofollow\" href=\"https:\/\/t.co\/JyjbpagK8a\" target=\"_blank\">pic.twitter.com\/JyjbpagK8a<\/a><\/p>\n<p>&#8211; nic carter (@nic__carter) <a rel=\"nofollow noopener\" href=\"https:\/\/twitter.com\/nic__carter\/status\/1524503951860809728?ref_src=twsrc%5Etfw\" target=\"_blank\">May 11, 2022<\/a><\/p><\/blockquote>\n<p>USDT has recovered to within two basis points of a dollar at the time of writing.  Plus, an article shared by the Tether team explained that they&#8217;re &#8220;on track to process $ 2 billion today.&#8221;  Danger averted.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"\/><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The crypto winter could be claiming more casualties among the stablecoin camp. The de-pegging of TerraUSD (UST) on Tuesday triggered market sell-offs, and now Tether (USDT) appears to be losing its footing, having slipped against the US dollar. The algorithmic stablecoin UST is, as the name implies, algorithmically backed. LUNA, the ecosystem&#8217;s corresponding token, has &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/harchi90.com\/heres-everything-you-need-to-know-about-terrausd-tether-and-other-stablecoins\/\"> <span class=\"screen-reader-text\">Here&#8217;s everything you need to know about TerraUSD, Tether and other stablecoins<\/span> Read More &raquo;<\/a><\/p>\n","protected":false},"author":1,"featured_media":12370,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","spay_email":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[8],"tags":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvNGUxOGJkOTAtNWUxMC00NjEzLTgxMjAtZjViZDk5MjVjZDg5LmpwZw==.jpg?ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvNGUxOGJkOTAtNWUxMC00NjEzLTgxMjAtZjViZDk5MjVjZDg5LmpwZw==.jpg","_links":{"self":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts\/12369"}],"collection":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/comments?post=12369"}],"version-history":[{"count":0,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/posts\/12369\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/media\/12370"}],"wp:attachment":[{"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/media?parent=12369"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/categories?post=12369"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/harchi90.com\/wp-json\/wp\/v2\/tags?post=12369"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}