One coin that could wreck cryptocurrency for good

June 22, 2022 World Blockchain

It’s been a nightmare few months for cryptocurrency investors, with billions being wiped off the market in a matter of weeks, but it’s about to get a whole lot worse.

A US financial expert has pointed to one thing that could bring down the entire cryptocurrency market for good, and it might be about to happen.

“Tether is really the lifeblood of the crypto ecosystem,” Hilary Allen, a finance expert at American University, told The New York Times. “If it imploded, then the entire facade falls down.”

Tether is a so-called stablecoin, a newer type of cryptocurrency that aim to insulate themselves from the extreme volatility of the rest of the crypto market by keeping prices stable, usually by pegging them to the price of a traditional currency. In Tether’s case, its value is tied to the value of the US dollar, though it also issues tokens pegged to the euro, the yuan and gold.