“The cracks in the crypto eco-system are increasing, and it would not be surprising to see a significant de-pegging event” in the future, Arvin Abraham, a United Kingdom-based partner at law firm McDermott Will and Emery, told Cointelegraph. Particularly at risk are those stablecoins that use other cryptocurrencies for their asset reserves, rather than fiat currencies like the euro or U.S. dollar, he said.
“Tether is completely unexposed to Alameda Research or FTX,” the firm added in its Nov. 9 blog post, further noting that its tokens are “100% backed by our reserves, and the assets that are backing the reserves exceed the liabilities.”“The one thing that has saved Tether so far is that people have generally sold their Tether to others and most users have not actually cashed out,” said Buvaneshwaran Venugopal, assistant professor in the department of finance at the University of Central Florida.
“They aren’t dead, and there are still some prominent ones, including the DAI token which is essential for the functioning of MakerDAO,” said Abraham. “The industry seems to be accepting this fact and moving away from uncollateralized algorithmic stablecoin models.”
USDC looked pretty bad even before the collapse of FTX, but now they hide really big losses.
Chainlink real-time Proof of Reserves with MintLock keep stablecoins stable. And protects users at the transaction level.
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I believe they are
The stablecoins will hold no need to fear
But if the contagion get to these stable coins it will be a disaster for it and their owners. Hold Crypto like Bitcoin or keep your cash in the bank.
tether held pretty well. no wonder, it's the biggest stablecoin because people trust it!
FUCKFTXOfficial this is how the market is feeling rn