Stable New Stablecoin Enters Market From Tehter To Mexican Peso. In this period when the trust in stablecoins decreased, the Mexican Peso attack came from Tehter.
Tether announced on its official announcement page that it has launched a stablecoin pegged to the Mexican peso.
While the crypto money industry continues to grow at full speed, stablecoins are at the forefront of the largest units. So much so that Tether USD (USDT) is the largest crypto unit after Bitcoin (BTC) and Ethereum (ETH) by market value.
Finally, Tether, the company behind one of the largest stablecoins, announced on its official announcement page that it has launched a Mexican peso-pegged stablecoin. In the statement, it was said that the new stablecoin to be released will have the MXNT tag, while it was stated that the stablecoin will initially be located on the Ethereum, Tron and Polygon Blockchains.
Tether’s CTO Paolo Ardoino made the following statements on the subject:
“Over the past year we have seen an increase in the use of cryptocurrencies in Latin America and this has made it clear that we need to expand our offerings. The launch of a peso-pegged stablecoin will provide a store of value for those in emerging markets and especially Mexico. It can minimize volatility for those who want to convert their assets and investments from fiat money to digital currencies.
“MXNT can minimize volatility for those who want to convert their holdings or investments from fiat to digital assets.”
The team also underlined that this development will add value to the growing market by providing a trial environment for new crypto users in the region. In addition to all this, it was stated that MXNT could be a pioneer to issue more peso-pegged stablecoins.
USDT traded below $0.99 on some major exchanges in early May, showing signs of pressure. However, Tether chief technology officer assured the community that they can comfortably withstand the use of 300 million USDT tokens in one day.
The firm also announced on the same day that it would move 1 billion USDT from the Tron network to the Ethereum and Avalanche (AVAX) blockchains. The swap decision was made amid escalating turmoil and concerns in the stablecoin market, fueled by TerraUSD (UST) and Terra (LUNA).
In the collapse of TerraUSD and Luna, there was an outflow of $ 7.6 billion from the largest stable crypto Tether
The collapse of the dollar-pegged cryptocurrency TerraUSD and the main currency of the Terra blockchain platform that supports it, Luna, last week sparked a sell-off in other cryptocurrencies as well, prompting questions about cryptocurrencies to rise again.
Meanwhile, Tether (USDT), the largest of the dollar-indexed cryptocurrencies, which is defined as indispensable for the operation of crypto markets, has also had an outflow of 7.6 billion dollars. This caused Tether, which promised to always be worth 1 dollar, to decline to 95 cents, albeit for a short time.
The private company, which is in close relationship with the Bitfinex crypto exchange and controls Tether, has managed to deliver on its promise by paying the difference. However, according to the year-end data announced by the company, he had to use twice the cash in his safe to do this.
Although the cryptocurrency has returned to its former level, the market cap has dropped by 9 percent since Thursday to $ 76 billion, according to CryptoCompare data.
Emphasizing that it is not known how durable the stablecoins, defined as stablecoins, are against such fluctuations, experts warn that new crises will negatively affect thousands of cryptocurrencies in the market.
European Central Bank board member Fabio Panetta said in a speech on Monday, “There is no guarantee that stablecoins will remain stable forever. Last week, the world’s largest stablecoin lost its index against the dollar, albeit temporarily.”
Panetta said that holders of stablecoins have no protection under any regulation and risk losing all of their holdings.
“It is an illusion to believe that private financial instruments that cannot be converted into reserve money at any time can replace money,” Panetta said.
Because buying and selling crypto assets directly in currencies such as the US dollar or Euro sometimes causes delays and commission costs, crypto investors generally prefer to make these trades in stable cryptocurrencies.
While there was an exit from Tether, the world’s third most valuable cryptocurrency in terms of market value, there was a 5% increase in the capital entering USD Coin belonging to its biggest rival, Circle, at the same time.
Tobias Adrian, Director of Money and Capital Markets at the International Monetary Fund, stated that this shows that some stable cryptocurrencies are exiting and others are entering, and now it is time for stable cryptos to become truly stable.