One of the world’s largest stablecoin, Tether, broke its $1 peg on Thursday amid cryptocurrency sell-off and steep decline in Bitcoin value.
Tether, which is pegged 1-to-1 to the US dollar, fell as low as 95 cents at one point in the day. According to Coin Metrics, the token traded at $0.998 in the afternoon.
This comes after another major stablecoin terraUSD plunged below 30 cents on Wednesday.
Tether Chief Technology Officer Paolo Ardoino tweeted on Thursday that tether customers would receive $1 when redeeming their tokens.
More than 300 million tether tokens were redeemed in the last 24 hours “without a sweat drop,” he tweeted.
Later in the day, the company said in a statement that “it is business as usual amid some expected market panic following this week’s market movements.”
“Tether has maintained its stability through multiple black swan events and highly volatile market conditions,” the firm said.
“Even in its darkest days Tether has never once failed to honor a redemption request from any of its verified customers. Tether will continue to do so which has always been its practice.”
Stablecoins are digital currencies which have relatively stable price as their price is pegged to a commodity or currency.
Picture Credits: Getty Images
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