ChatGPT confirms, “No stablecoin will never anchor value”

Stablecoins or cryptocurrencies as we know them are always equivalent to USD. Because these coins guarantee their value against the dollar. The ratio of 1:1, because of this, the stablecoin has won the trust of many investors.

But then those thoughts could change forever when UST, the first popular stablecoin on the Terra network, broke its $1 peg and plummeted to a value close to zero. This created a major crisis affecting the cryptocurrency market since the first half of 2022.

Around the same time, other stablecoins began to suffer as investors began to worry about the stability of what was happening. But in the end, stablecoins survived.and survive to this day

Have you ever wondered what stablecoins are never pegged? Some might reverse this diagram. But we have a better way, which is to ask smart AI like ChatGPT.

ChatGPT’s answer was unexpected. Because of the answers given, we know that there is no stablecoin that has never lost its pegged value. So, in this post, we will take a look back at the top stablecoins that lost their value. What exactly caused it?


When it comes to stablecoins, the first thing you think of is USDT, because it is the number one stablecoin by market capitalization.

USDT is a token issued by Tether Limited in 2014 under the name “Realcoin” and later changed its name to Tether (USDT).

But if you ask whether USDT has ever broken the peg, the answer is yes Back in the severe crash of the Terra network, USDT is also not safe. But that was caused by investor mistrust and self-selling.

Additionally, during this period, the price of Bitcoin dropped significantly, causing USDT to be pegged to $0.97.

At the end of 2022, as in November, the situation of USDT is once again worrying. Eventually, the price fell by 2% and was worth around $0.97. This should not happen to any stablecoin, however, the USDT peg was due to massive exchange crashes.

Further into late 2017, USDT hit its lowest price in the past 18 months amid rumors of a lack of USD backing. The company has sufficient reserves to support the USDT behind it.

central bank of the united states

Of course, the latest hot topic stablecoin is USDC, which is one of the hottest. Following USDT by market capitalization, USDC is also developed and built on the Ethereum blockchain.

This led many to believe in USDC since it was issued by Circle, and Coinbase later received a license from the SEC to expand its usage base.

As the 2022 crisis looms, token prices are not much pegged.Despite the severe crisis from the beginning of the year to the end of the year

But the recent Silicon Valley Bank crisis had an immediate impact on USDC, as Circle acknowledged $3.3 billion of its $40 billion in reserves.Deposit to Silicon Valley Bank

This immediately affected the price of USDC, causing the previously barely pegged USDC to plummet by more than 60%, before returning to its original trajectory. The Fed declared bankruptcy However, now the USDC price is pegged to $1 again. The current price is $0.9909.


BUSD is a currency we are often familiar with as it is based on the stablecoin of the exchange giant Binance. BUSD is also pegged 1:1 to the US dollar. BUSD is a collaboration between Paxos and Binance.

However, BUSD has been a fairly anchored coin, but it has never broken above $0.99. But anyway following previous stories like Paxos being targeted by the SEC for unlisted securities. This caused the price to break the peg and plummet.until people get freaked out

For the Silicon Valley crisis that is now on the rise. The impact on BUSD may seem insignificant, but Paxos has solemnly stated that it has nothing to do with the bank.

Lastly, although this is a USD backed stablecoin, due to the crisis in the cryptocurrency market and the volatility that is taking place in the market, the value may move away from the peg at any time. Including the price of Bitcoin.

Cryptocurrencies and Crypto tokens carry a high degree of risk. You may lose your entire investment amount. Please study and invest appropriately according to your risk appetite.

Source of information: Compiled from SIAMBLOCKCHAIN ​​by 0x Information.The copyright belongs to the author Pitchaporn, and shall not be reproduced without permission

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