This week the biggest stablecoin plunged below $0.87 level. Thus, Tether hit record low for the past 18 months. USDT capitalization lost several millions. Soon Tether recovered and now costs $0.97 but it still does not look very optimistic.
What are the consequences?
When USDT started going down, investors switched to other stablecoins to keep their investments safe. Tether plummeted and Winklevoss-backed Gemini Dollar (GUSD) went up. If compared to USDT, GUSD has an advantage as it was officially approved by the New York State Department of Financial Services (NYDFS) and Tether was not audited. However, USDT developers claim that Tether is pegged to U.S. dollar.
Traders need stablecoins to avoid commission when exchanging crypto to fiat money. If a stablecoin is volatile, it is not a stablecoin at all and it makes no sense to keep it. Now it is just the right time to say goodbye to Tether and buy some Gemini Dollars.