The so-called stable coin, USDT, has dropped significantly against USD on 10/15. While USDT typically values in a range of 0.99 to 1.01 when compared against USD, it dropped to as low as 0.85 on the Kraken exchange on 10/15. In this sense, whether stable coin is actually stable enough still remains a heated debate.
USDT has long come under scrutiny ever since its launch, over whether it actually holds enough reserves to match the tokens. Since Tether is privately held, it has yet disclose any official audits, which investors have repeatedly demanded.
A study released by UT Austin further claimed that USDT was heavily used to artificially inflate bitcoin prices (significantly during the 2017 peak). “Tether seems to be used both to stabilize and manipulate Bitcoin prices,” finance professor John Griffin and co-author Amin Shams wrote in the study.
Since the “fall” of USDT (tho it is still the biggest stable coin player in the game), several numbers of stablecoins have risen, including the Gemini Dollar, PAXOS, TUSD, HUSD, etc. For these newly risen stablecoins, the question now is: can they stay stable?