NYDIG: Stablecoins such as USDT are merely market trading tools and are not truly pegged to the US dollar.
Jinse Finance reported that Greg Cipolaro, Global Head of Research at NYDIG, stated that stablecoins such as USDC, USDT, and USDe are not truly pegged to the US dollar, but rather fluctuate based on market supply and demand. Essentially, they can only be considered as market trading instruments. The so-called "stability" of stablecoins is actually determined by arbitrage and market dynamics. For example, when the price falls below $1, traders buy in; when it rises above $1, traders sell. Users often misunderstand the real risks associated with these assets.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Crypto treasury companies hit $340 billion market cap as altcoin DATs outperform
September Rate Hike Expectations Continue to Rise! Bank of Japan’s Strongest Hawk Advocates Flexible Rate Hikes to Curb Upside Risks in Prices
Kazuo Takata, one of the most hawkish members of the Bank of Japan's Policy Board, once again called for flexible interest rate hikes to curb the upside risk of prices deviating from the target.
USD/JPY Price Forecast: Sits near late July high; bulls retain control above 160.00
Crypto prices
More
