Tether is the largest stablecoin in the world. Promising a secure investment free from the drama surrounding other cryptocurrencies, in early May the company held an all-time-high supply of $84.2 billion. With the currency designed to have its value tied to that of the U.S. dollar, Tether offered investors the appearance of a safe bet.
As it turns out, early May might as well be last century. With investors pulling over $10 billion out of the cryptocurrency, Tether’s value has plunged to 95 cents to the dollar. Meanwhile, the rest of the Tether investment base is holding its breath and waiting to see if Tether is about to go the way of terraUSD, the last stablecoin to collapse and wipe out billions of dollars of wealth in a very short period of time.
Perhaps hoping to assuage the market, Tether released a statement explaining that this momentary dip in value is not a cause for panic. “Every USDT is redeemable for dollars via Tether, and as such any time the price goes below $1 investors can earn a profit by buying USDT for a discount and redeeming it with Tether,” the statement read. “USDT is, quite simply, fully backed by collateral.”