{"id":571932,"date":"2022-06-01T20:27:36","date_gmt":"2022-06-01T19:27:36","guid":{"rendered":"https:\/\/en.ethereumworldnews.com\/?p=571932"},"modified":"2022-06-01T20:27:52","modified_gmt":"2022-06-01T19:27:52","slug":"usdt-is-resilient-has-undergone-a-successful-stress-test-with-the-collapse-of-terra-says-team-tether","status":"publish","type":"post","link":"https:\/\/en.ethereumworldnews.com\/usdt-is-resilient-has-undergone-a-successful-stress-test-with-the-collapse-of-terra-says-team-tether\/","title":{"rendered":"USDT is Resilient and Has Undergone a Successful Stress Test With the Collapse of Terra, Says the Team at Tether"},"content":{"rendered":"
Quick take:<\/p>\n
The team at Tether<\/a> has released a new report highlighting that its stablecoin of USDT has proven to be resilient amidst the events surrounding UST’s collapse. According to<\/a> the team at Tether, USDT underwent a stress test due to the ripple effect of UST’s depegging and proved successful.<\/p>\n The report provided a brief history of bank runs dating back to the 1800s and the early 1900s in the United States. In addition, the team at Tether explained the 21st century has not witnessed frequent bank runs apart from the collapse of the Lehman Brothers that ignited the 2008 financial crisis.<\/p>\n However, when they occur, Bank runs ‘are fundamentally caused by a confidence crisis that pushes depositors to withdraw all their money, and because the bank uses a fractional reserve system, the bank cannot fulfill the redemption requests.’<\/p>\n The team at Tether further reiterated that USDT has proven<\/a> time and time again ‘to be able to withstand market volatility, crashes, and fund redemptions that would cause many other protocols and especially banks to fail.’<\/p>\nA Fractional Reserve System amplifies Bank Runs.<\/h2>\n
Tether is Fully Backed. Redemption of $10B in USDT is Further Evidence.<\/h2>\n