Topic: Tether new audit report & HUSD losing its peg (Read 66 times)
Huobi team have fixed the HUSD Peg issue and things are back to normal but I want to ask why stable coins sometimes loses their pegs, is there something I don't know about these stable coins?.
Stablecoin has no future aside for short term holding as many traders using that to save his money from dump, so there's no point to holding stablecoin in the long term, it's same like you're holding fiat money. I'd say if you're looking to hold centralized fiat, it's better for you to hold your local fiat on your banks rather than centralized coin. Another option is convert it to decentralized stablecoin e.g. DAI.
also reporting that Tether’s cash and bank deposit holdings rose by 32% in the period.
We know that tether is not backed by USD. In cash tether have only a few percent of its portfolio, the rest of the funds are hold mainly in corporate bonds, short-term debt, government bonds and other mainly debt-related securities:
Those are safe stuff. But not so much if you need to dump everything in one day because of attack. Especially now, when everything is down. TLT (ISHARES 20+ YEAR TREASURY BOND ETF) is down 36% from its ATH. Its just short term papaer loses that will sooner or later recover because its just bonds that will pay back invested money + interest but not if you are forced to sell on the lows.
Those are safe stuff. But not so much if you need to dump everything in one day because of attack. Especially now, when everything is down. TLT (ISHARES 20+ YEAR TREASURY BOND ETF) is down 36% from its ATH. Its just short term papaer loses that will sooner or later recover because its just bonds that will pay back invested money + interest but not if you are forced to sell on the lows.
also reporting that Tether’s cash and bank deposit holdings rose by 32% in the period.
As far as I know they only had like 5% in cash. So its now 5%*1,32 = 6.6%?
and HUSD losing its peg and going as low as $0.85 cents, What do you think the future is looking like for stablecoins?
https://twitter.com/thetokenist/status/1560285238537887749
https://twitter.com/thetokenist/status/1560285238537887749
Its back to $0.9943. Whole event was triggered by news: "This follows news that crypto personalities Sam Bankman-Fried and Justin Sun were in talks to purchase large stakes in Huobi Global.
Huobi Global does not explicitly issue HUSD but Huobi Capital invested in HUSD issuer Stable Universal in 2019."
https://coinmarketcap.com/community/articles/34234
I think its just FUD.
They were able to restore the Peg within 24hrs and It seems like things are now in control hopefully Lets see in a few days whether they can keep up and maybe if they do I will say we are good to go for the time being Algo stable coins if not backed carefully at this stage of the market can really devastate the market if things get out of hand so lets hope nothing happens like that
Thoughts on Tether's new audit report & HUSD losing its peg?
Tether recently got a new accounting firm to oversee its asset reserves, probably aiming to calm down the storms regarding its reserves (or lack of them?)
They reported $66.4B in asset reserves and holdings, also reporting that Tether’s cash and bank deposit holdings rose by 32% in the period.
With all these scares regarding Stable coins like the UST crash, and HUSD losing its peg and going as low as $0.85 cents, What do you think the future is looking like for stablecoins?
https://twitter.com/thetokenist/status/1560285238537887749
https://tokenist.com/tether-publishes-first-audit-report-with-new-accounting-firm-66-4b-in-reserves/
Tether recently got a new accounting firm to oversee its asset reserves, probably aiming to calm down the storms regarding its reserves (or lack of them?)
They reported $66.4B in asset reserves and holdings, also reporting that Tether’s cash and bank deposit holdings rose by 32% in the period.
With all these scares regarding Stable coins like the UST crash, and HUSD losing its peg and going as low as $0.85 cents, What do you think the future is looking like for stablecoins?
https://twitter.com/thetokenist/status/1560285238537887749
https://tokenist.com/tether-publishes-first-audit-report-with-new-accounting-firm-66-4b-in-reserves/
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