• Uncategorised

A Second Stablecoin Wobbles, Further Undermining Crypto Markets

As the price of bitcoin and other prominent cryptocurrencies has dropped dramatically in recent days, a central type of token used by traders — called a stablecoin — has also begun to lose value, sparking broad questions about the viability of cryptocurrency as an asset class. Days after one of the largest stablecoins, called terraUSD, started to drop in value, a second stablecoin has shown a similar sign of weakness. 

Tether, the world’s largest stablecoin, had a market capitalization of more than £82 billion on Sunday. Since then, the value of one tether dropped from its designated benchmark of £1 to 95 cents at 12:24 a.m.

PT on Thursday. This follows the trajectory of terra, which “lost its peg” to the US dollar on Monday and has shed most of its value since then.  As the name suggests, stablecoins are cryptocurrency tokens backed by an asset — often the US dollar, but not always — and designed to hold a steady, consistent value.

Many crypto traders prefer using stablecoins, instead of trading tokens directly or using US dollars, because the transactions usually have lower fees and can be processed more quickly. The word stablecoin “has been used in the broader blockchain ecosystem to define a lot of different token structures, and the truth is, not all of them are stable in the way we’d define them,” Denelle Dixon, CEO of the Stellar Development Foundation, said in an emailed statement. The foundation is a nonprofit focused on payments, and it supports a number of stablecoins. Dixon previously served as chief operating officer of Mozilla. 

The decreases in the prices of both terraUSD and tether come amid dramatic declines in the broader cryptocurrency market. Bitcoin and ether, the two biggest cryptocurrencies by market cap, are both trading at prices more than 20% lower than where they were seven days ago. The crypto market has shed more than £200 billion over the past 24 hours, according to coinmarketcap.com.

“Right now in crypto, we’re seeing a market correction in response to the interest rate hikes, systemic risk-off across all financial markets and fears involving the rapid rise of inflation,” Steve Ehrlich, CEO of crypto firm Voyager Digital, said in an emailed statement.   As of 3 p.m. PT on Thursday, bitcoin was trading at £28,399 and ether at £1,906.

Fears over inflation and rising interest rates may be contributing to the bearish economic outlook for investments outside of cryptocurrency markets as well.  TerraUSD slipped to 36 cents by Thursday at 9:35 a.m. PT, after the official terra Twitter account posted a statement saying the terra blockchain had been officially halted to “prevent governance attacks following severe £LUNA inflation and a significantly reduced cost of attack.”

Since then, the official terra Twitter account has said that its blockchain network has undergone patching and has now “resumed block production.”  Though tether hasn’t yet experienced the degree of damage sustained by terraUSD, it’s a much more important stablecoin. The small change to its price may have far-reaching reverberations throughout the cryptocurrency ecosystem.

But according to the company behind tether (also called Tether), business is going forward normally.  “Tether is pleased to report that it is business as usual amid some expected market panic following this week’s market movements,” Tether CTO Paolo Ardoino said on Friday in a emailed statement.  The tether stablecoin has become an integral part of global cryptocurrency trading, the mechanism of choice for more than half of all bitcoin traded worldwide as of September 2021, according to CryptoCompare, a global cryptocurrency market data provider.

Tether has been embroiled in controversy for years. In 2021, its parent company (also called Tether) and its affiliated cryptocurrency exchange, Bitfinex, were ordered to pay a fine of £18.5 million and stop trading activities in New York state. The fine was levied against the companies due to a case that involved a cover-up of £850 million that went missing. 

“Bitfinex and tether recklessly and unlawfully covered up massive financial losses to keep their scheme going and protect their bottom lines,” the attorney general of New York, Letitia James, said at the time of the ruling.

Terraform Labs (the company behind terraUSD) didn’t respond to a request for comment. 

Tags:

flannels listed on couponmatrix.ukfranco-manca listed on couponmatrix.ukthreadbare listed on couponmatrix.uktravelodge listed on couponmatrix.ukyo-sushi listed on couponmatrix.ukzest-beauty listed on couponmatrix.uk
flannels listed on couponmatrix.ukFounded in 1976, Flannels was created to bring high-end designer clothing from London to the rest of the world. Lap up a little luxury for less with a Flannels discount code and go all out for every occasion. Stocking big-brand names such as Stella McCartney, Victoria Beckham, Gucci and Prada, Flannels’ expansive collections for men, women and children exudes timeless style and sophistication.
franco-manca listed on couponmatrix.ukThe sourdough superheroes at Franco Manca are experts in fresh, traditional pizza made the Neapolitan way. Check out the delicious vegetarian specials topped with halloumi, roasted courgettes and plum tomatoes or indulge in a meat feast with cured ham, mozzarella, ricotta and wild mushrooms. Feeling fancy? Opt for a classic Franco Manca salad for a lighter lunch that doesn’t compromise on flavour. Whether dining at a Franco Manca restaurant or getting your pizza delivered to your doorstep, you’ll want a Franco Manca discount from Groupon to cut a slice from your bill.
threadbare listed on couponmatrix.ukWhether you’re searching for a snazzy dress for a summer BBQ or a jacket for the new school term, Threadbare is the place to find top-quality men, women and children’s clothing at affordable prices. Savvy shoppers will find the best Threadbare discount codes and top sale picks on this page, as well as an abundance of discounts for students and key workers. Make Groupon your first port of call and you can expect to save more money on Threadbare clothing for parties, days out and everyday wear, too!
travelodge listed on couponmatrix.ukTravel on a budget with Travelodge for a holiday that’s easier on your credit card. From Bristol to Barcelona, there are over 590 Travelodge hotels dotted across the UK, Ireland and Spain, so there’s an affordable stay guaranteed wherever you’re travelling. Room rates start from an incredible £32 or less and amenities like free WiFi and the famous Travelodge breakfast are hard to pass up – families will especially love the free breakfast for kids! Book your room with a Travelodge discount code from Groupon to take the cost down further. We’re tracking all the best Travelodge offers to help budgeters make the most of their break, including exclusive discount codes and gift cards with bookings, so check our page to nab a premium room at the best price. With a Travelodge in every city and so many ways to save, nothing tops Travelodge on affordability, convenience and great value for money.
yo-sushi listed on couponmatrix.ukIf you’re crazy about sushi and Japanese food you will love YO! Sushi. Created by sushi masters and served fresh and beautifully crafted, the UK chain of authentic Japanese street food has since grown to over 100 restaurants. With a variety of dishes from traditional sushi to innovative fusions, YO! Sushi is bursting with flavour. Using your YO! Sushi voucher you can enjoy a delicious meal for less, whether you want to enjoy a taste of culture yourself, with friends, family or even on a date, YO! Sushi have all the options to create a truly memorable meal.
zest-beauty listed on couponmatrix.ukFor beautiful hair and flawless skin, look no further than Zest Beauty - bringing you the best in skincare, nails, makeup, tanning and much more. Not to leave anyone behind, Zest Beauty also offers a men's section, where you can find everything you need to look on point. With your Zest Beauty discount codes, no matter your gender, you can enjoy looking and feeling great for some awesome prices. Treat yourself to a deep hair treatment, facial exfoliator or an intensely moisturising mask. Or, with the savings you've made, pick up all three and enjoy a spa day at home!