largest stablecoin Tether (USDT) With a market value of $110 billion Bitcoin (BTC) and Ethereumfrom (ETH) Then it emerges as the largest cryptocurrency.
While Tether strengthens its position day by day, Deutsche Bank warned investors against all stabalecoins, including Tether.
Stating that they reviewed approximately 334 stablecoins in a recent report Deutsche Bank analysts point out that only 14% of them have survived so far.
“Some stablecoins may survive, but most will likely fail.
The enduring success of stablecoins relies on reliability, reserve support and tight operational controls. But these qualities are currently missing from many major stablecoins.
So the 30 percent de-peg among some stablecoins is not surprising at all. “
Stating that all stablecoins are unstable due to lack of transparency and strong support, analysts also warned investors against the leading stablecoin Tether.
Pointing to Tether’s track record regarding misleading statements regarding reserve stocks, analysts reminded that Tether received a total fine of $41 million from the CFTC.
Analysts also said that recently published reports stated that Tether (USDT) remains the stablecoin most used in criminal activities.
Deutsche Bank analysts recently criticized all stablecoins, including Tether (USDT).Erraform Labs’ algorithmic stablecoin TerraUSD (TUSD) He cited the collapse of 2022 and the removal of at least $40 billion from the market in a few days.
*This is not investment advice.
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