USDT-dollar peg wobbles as markets continue to struggle: Tether CTO weighs-in

cointelegraph.com:

Cryptocurrencies markets continue to suffer major losses following the depegging of Terra (LUNA) ecosystem's stablecoin UST - causing discrepancies between stablecoin pegs and the value of Bitcoin (BTC).

Stablecoin Tether (USDT) showed signs of stress as USDT/USD traded under $0.99 on major exchanges. Tether and Bitfinex CTO Paulo Ordoino took to Twitter to assure USDT holders that over 300 million UDST tokens had been redeemed at their $1 peg over the past 24 hours.

GMReminder that tether is honouring USDt redemptions at 1$ via https://t.co/fB12xESSvB .>300M redeemed in last 24h without a sweat drop.

Cointelegraph reached out to the Tether CTO Paolo Ardoino to ascertain if there is cause for concern in USDT’s ability to maintain its $1 peg in light of recent events. Ardoino stressed that USDT has maintained its stability through multiple black swan events and highly volatile market conditions and has never refused redemptions.

With fear, uncertainty and doubt at levels reminiscent of the 2018 Bitcoin market crash, Ardoino offered perspective given the technical differences between USDT and algorithmic stablecoins:

The ongoing LUNA/UST situation may well have dented confidence in stablecoins and respective platforms' ability to redeem token swaps for their $1 peg. Despite that the fact, Ardoino believes that stablecoins will continue to be a vital cog in the cryptocurrency space. "I do not believe that trust was ever lost for centralized stablecoin users," he said, adding: "There will always be a market for stablecoins as they present an opportunity for traders to interact with the larger crypto ecosystem."

The price of BTC/USDT was also out of sorts in comparison to other notable stablecoins - with the difference in value