05-12-2022 icon

USDT loses dollar peg, slides to 97 cents

By Lucy Adegbe

Tether (USDT) slightly lost its dollar peg in the early hours of Thursday, snapping to 97 cents and back to 98 cents. 

This development came as Bitcoin, the largest cryptocurrency exchange based on market circulation, briefly lost its $27k support level and tanked to $25,400.

Despite Tether’s CTO, Paolo Ardoino confirming that Tether was honoring the USDT redemption at $1 through its website, investors continued to sell off their coins. The selloff seems to be connected to the poor sentiments which stablecoins have attracted in the last 48 hours.

Earlier in the week, TerraUSD (UST), an algorithmic stablecoin lost its USdollar pegging and tanked to as low as 22 cents, up from $1.00.

As of the time of writing, USDT is trading at $0.983 while UST is exchanging at $0.634.

USDT/USD 24-hour trading chart (Source: tradingview.com