Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: Ratnakar Das on September 25, 2022, 03:52:58 AM
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Could massive crash impact stable coins? like USDC or BUSD
For example if we will have a massive crash due to regulation and BTC is going to 5-12k how would it effect stable coins?
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Could massive crash impact stable coins? like USDC or BUSD
For example if we will have a massive crash due to regulation and BTC is going to 5-12k how would it effect stable coins?
Stable coin is not affected by Bitcoin price fluctuations, USDT is backed up by fiat currency at a 1:1 ratio.
Unlike UST, which has failed to maintain its price, this right occurs because UST is not backed up by Fiat currency, but LUNA Token and several other altcoins, therefore the price can be crushed because there is no Fiat currency backup.
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Those factors will not directly affect the value of stablecoin. So what can? Well, the answer is the very platform itself. Example, if it can be proven that USDT is not actually backed by real money or that there is something wrong with it then it can be possible to undergo depeg from the US Dollar thereby its price can crash...just like what happened to some other stablecoins. That is the reason why I am also careful with the stablecoin am using...and making sure am not holding them a lot.
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Could massive crash impact stable coins? like USDC or BUSD
For example if we will have a massive crash due to regulation and BTC is going to 5-12k how would it effect stable coins?
Of course, the fall of bitcoin has no effect on stablecoins. These stablecoins are even a big help to bitcoin holders because when the holders are sure that the value of bitcoin will fall, they even convert it to stablecoins because the exchange battle is 1:1
the only thing affected by the fall in the price of bitcoin is other cryptocurrencies that are also volatile in the market.
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Could massive crash impact stable coins? like USDC or BUSD
For example if we will have a massive crash due to regulation and BTC is going to 5-12k how would it effect stable coins?
Of course, the fall of bitcoin has no effect on stablecoins. These stablecoins are even a big help to bitcoin holders because when the holders are sure that the value of bitcoin will fall, they even convert it to stablecoins because the exchange battle is 1:1
the only thing affected by the fall in the price of bitcoin is other cryptocurrencies that are also volatile in the market.
You're right, stable coins won't effected by bitcoin performance.
Thats the fact that we saw..
I think stable will always be stable coins.
No worries about it.
Stable coins function for the value of our be assets in 1 dollar.
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I think stable coins will stable.
I don't think stable coins has been effected by bitcoin.
Bitcoin is unstable and always fluctuate.
We know about 1: 1 ratio of stable coin.
Several of stable coins are back up by currency or gold.
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Stable coin like USD is something unshakable regardless of Bitcoin crash momentum. You know it was were for a long time and we had never seen USD crashed to 50%. Tera stable coin is different. The situation and condition is far different. Imagine USD dump, it should not be called stable coin cuz it dump lower than common percentage decrease.
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Could massive crash impact stable coins? like USDC or BUSD
For example if we will have a massive crash due to regulation and BTC is going to 5-12k how would it effect stable coins?
Obviously people convert there Bitcoin and altcoin to stablecoins on market crash so the stablecoins price usually valued above the 1$ pegged due to the increasing demand. There’s no way it will crash like UST did because all the USDT that converts into fiat automatically burns out of the circulating supply that control the price. The only way a stablecoin will crash is a direct attack on its market.
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If there is a massive crash in the crypto market, the stablecoin may have a small impact. But it is worth ignoring. So not all stablecoins can be trusted like UST in Terra network. You can rely on some top stablecoins like USDT, USDC, BUSD, DAI.
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If there is a massive crash in the crypto market, the stablecoin may have a small impact. But it is worth ignoring. So not all stablecoins can be trusted like UST in Terra network. You can rely on some top stablecoins like USDT, USDC, BUSD, DAI.
Actually we can trust all stable coins as stable regardless the market crash. However due to some serious cases and conflict of interest that could lead to compromise the inner core of the project is the main concern. Once it is compromise, stable coin could be a shitcoin in motion and looks.
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Could massive crash impact stable coins? like USDC or BUSD
For example if we will have a massive crash due to regulation and BTC is going to 5-12k how would it effect stable coins?
I think stable coin will always stable if they have dollar or gold as back up.
But we know several of them unstable.
So, please choose reputable stable coins.
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As stable coins are backed up by fiat currencies, commodities, or any other valuable trading asset with a fixed value, stable coins are least likely to be affected by any market crash. However, if the asset to which the coin is attached crashes because of its own factors, then the stable coin might crash.
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I need to know which stablecoin you mean, if you refer to UST, then the collapse of UST occurred due to depegging, in contrast to USDT, USDC and BUSD, these three coins seem to be under scrutiny by the SEC, especially USDT (tether) because the stable supply of USDT coins is on the way. SEC monitoring, but still someday stable coins can fall if there is no backup paper currency to keep the price really stable.