When the largest stablecoin in the cryptocurrency world lost its dollar pegged value, it frightened an already terrified market. It dropped to as low as $0.9455 cents. However, it has already rebounded to trade at $0.993 at the time of publication. During the recovery, the Tether organization published a statement.
The notification stated that they had offered stability during an anticipated market panic. Tether has continued to redeem regularly. Verified consumers have been able to redeem USDT for $1 on the site. Tether has permitted more over 300 million USDT redemptions in the previous 24 hours, according to the company. While it is still processing over 2 billion today with no problems.
USDT is still down 0.45 percent in the last 24 hours. However, its 24-hour trading volume has increased by 10% to $171.05 billion. Tether claimed to have maintained stability in a very turbulent market and to have proven to offer service to all of its clients.
Paolo Ardoino, Tether CTO, answered questions regarding the USDT’s ongoing troubles with de-pegging in a conversation with Scott Melker.
Ardoino stated that their portfolio is incredibly strong and that de-pegging will not occur. It is redeemable at any time. In the history of the Tether, we have never refused a single redemption.
He added that they do a stress test every week. It also incorporates data from the 2008 financial crisis, preparing them for any circumstance.
When questioned about the recovery after the LUNA crash, he stated that it is a difficult decision. I believe that if they can explain what happened and reestablish market trust, they should develop organically and slowly.