Golden Finance reports that Greg Cipolaro, the global research director of NYDIG, stated that USDC, USDT, and other stablecoins like USDe are not truly pegged to the US dollar, but rather fluctuate based on market supply and demand. Essentially, they can only be considered a market trading tool. The so-called “stability” of stablecoins is actually determined by arbitrage and market dynamics. For example, when the price falls below $1, traders buy, and when it rises above $1, traders sell. Users often misunderstand the true risks associated with these assets.
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NYDIG: Stablecoins like USDT can only be considered market trading tools, not truly pegged to the US dollar.
Golden Finance reports that Greg Cipolaro, the global research director of NYDIG, stated that USDC, USDT, and other stablecoins like USDe are not truly pegged to the US dollar, but rather fluctuate based on market supply and demand. Essentially, they can only be considered a market trading tool. The so-called “stability” of stablecoins is actually determined by arbitrage and market dynamics. For example, when the price falls below $1, traders buy, and when it rises above $1, traders sell. Users often misunderstand the true risks associated with these assets.