1inch (1inch) 
Tether, the leading stablecoin globally, has responded to a recent report from Deutsche Bank that raised concerns about stablecoins’ stability and Tether’s solvency. The study, released on May 7, examined 334 currency pegs dating back to 1800, revealing that only 14% have survived over time. Applying this analysis to stablecoins, the report highlighted potential risks such as volatility and de-pegging events.
Key Points:
– Deutsche Bank’s report questions stablecoins’ stability and Tether’s solvency.
– Concerns raised about lack of transparency and regulatory oversight in stablecoin operations.
– Study cites the collapse of TerraUSD in 2022, emphasizing risks associated with stablecoins.
– Tether criticized the report for lacking clarity and substantial evidence.
The report also expressed doubts about Tether’s solvency and its impact on the crypto derivatives market. It warned of potential losses in a ‘Tether peso moment,’ affecting leveraged traders and the broader crypto ecosystem. Additionally, Deutsche Bank’s survey of consumers in six countries revealed skepticism about the future of stablecoins, with only 18% expecting them to thrive.
Deutsche Bank’s research team highlighted Tether’s dominance in the stablecoin market and its influence in derivatives trading. The analysts noted a 30% de-peg rate among stablecoins and raised concerns about defunct stablecoins that are challenging to track. Tether, on the other hand, criticized the report for lacking concrete data to support its claims of stablecoin decline.
In conclusion, while Deutsche Bank’s report raises valid concerns about stablecoins and Tether’s solvency, Tether has refuted the findings, emphasizing the need for more rigorous analysis and clarity in such assessments. For more insights and updates on the cryptocurrency market, stay tuned to Global Crypto News.
