The price of Tether, the world's biggest stable coin, fell away from its $1 peg on Thursday, intensifying worries amid a market-wide crash and falling prices of cryptocurrencies.
On Thursday, tether lost its $1 peg.
The stable coin that is supposed to be tied to the U.S. dollar fell as low as 94 cents early on Thursday.
A major crash in cryptocurrencies has wiped out hundreds of billions of dollars from the market after another stable coin, TerraUSD, completely slipped its $1 peg.
The group has been criticized for its lack of transparency over its holdings and was fined $41 million by the U.S.
Paolo Ardoino said that the group has managed more than 300 million dollars in the last 24 hours without sweat.
Stable coins are supposed to be a relatively safe place to put your money. They are kept stable by being pegged to other assets, including the dollar and tangible assets like gold. With a market cap of more than $80 billion, tether is the world's biggest stable coin and the third-largest cripto coin. It is used to complete other transactions and store value in the digital market.
Regulation. Stable coins have been identified by regulators as an area of the market in need of rules and guidance. The assets are a risk to financial stability and the Treasury Secretary wants a consistent federal framework to govern them.
As TerraUSD struggles to regain its dollar peg, Luna nosedives under $2, losing 98% of its value.
Executives at the world's third largest currency face a criminal probe.
There are 99 problems and $1.
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