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The market is starting to distinguish between stablecoins, although these cryptocurrencies are all designed to swap 1 to 1 with fiat.
Several US dollar pegged cryptocurrencies are now trading significantly higher or significantly lower than the greenback, reflecting investors' perceptions of their relative risk.
Since stablecoins are typically used as access ramps for investors looking to buy bitcoins or other cryptocurrencies, these rewards and discounts mean that customers may not pay the bitcoin "sticker price", as listed on a given exchange platform. or data.
The new and more discriminating assessments began on Monday morning, when the best known stablecoin, Tether (USDT), broke its peg, dropping to a low of around $ 0.87. And while the price stabilized closer to $ 1 over the next day or so, its market capitalization dropped significantly, indicating that the cables were removed from circulation.
In fact, based on data compiled through CoinMarketCap, the market sees the USDT as the most risky stablecoin at the moment, paying less than a dollar for each token. At the time of printing, the token was trading for around $ 0.98.
This discount may reflect long-standing doubts that the issuing company, known as Tether, has enough dollars in reserve to fully repay its tokens; the company, which has close ties to the cryptographic exchange of Bitfinex, has long claimed to be completely confidential but has not been able to get an audit.
The downside, the Gemini Dollar (GUSD), supported by the Gemini exchange of the Winklevoss brothers, saw its price increase, touching the all-time high of 1.19 $ per token, even if by press time it fell to $ 1.04.
Other important stablecoins: the USD // (USDC) currency issued by Circle, TrueUSD (TUSD) issued by TrustToken and Paxos Standard Dollar (PAX) issued by Paxos – are trading just over $ 1, even if none of these reached high GUSD.
In particular, the contrast between the prices of GUSD and PAX is further highlighted by the volume of each token in circulation: while Paxos announced on Monday night that more than 50 million tokens were issued, the supply of GUSD seems to be much lower.
Purchasing power
As a result of new risk premiums, how much an investor pays for a bitcoin is fluctuating depending on which stablecoin they are using. At one point on Tuesday, the purchase of a bitcoin in USDT was about $ 700 more expensive than buying a bitcoin in GUSD.
To further illustrate the impact on investors: if an investor buys $ 6,017.93 of GUSD, he would then be able to buy 1 bitcoin. In comparison, a bitcoin costs $ 6,419.72 if purchased in TUSD, $ 6.438.74 in USDC, $ 6,448.70 in PAX or $ 6,709.16 in USDT, starting at 18:00 UTC.
In contrast, the bitcoin costs $ 6,585.52 if purchased directly with the US dollar, according to CoinMarketCap.
In other words, bitcoin is more expensive if purchased with USDT than any other dollar stablecoin on this list.
Conversely, bitcoin is the cheapest if purchased with GUSD, indicating that the global cryptography market has more confidence in this one month stablecoin than in tether, the one that has been the longest.
Jenga blocks through Shutterstock
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