Is it the End of Stablecoins like Tether (USDT) and USD Coin (USDC)? TMS Network (TMSN) Rally Continues Through Stage 2 Presale

Stablecoins are not so stable anymore. The collapse of the Silicon Valley Bank and the frenzy that followed kicked down the crypto market by a notch, albeit temporarily. Crypto investors who invested in the "digital dollar" were not spared either.

Historically, institutional investors leaned towards USD Coin (USDC) over Tether (USDT). As a result, the market capitalization of Circle Financial's USD Coin (USDC) bloated to $55 billion.

Investors trusted USD Coin's (USDC) promise of more transparency and regulatory compliance as an advantage over Tether (USDT). So, while Tether (USDT) was a bigger player, USD Coin (USDC) became a serious competitor.

With the banking system falling, USD Coin (USDC) lost its peg. USD Coin (USDC) lost access to reserves of $3.3 billion, as per an announcement by Circle's CEO, with the collapse of the Silicon Valley Bank.

So, is this the end of stablecoins as we know them?

What Does USD Coin's (USDC) and Tether's (USDT) Dollar Peg Even Mean?

USD Coin (USDC) announced that $3.3 billion of the USD Coin's (USDC) reserves were parked with the ill-fated Silicon Valley Bank. Following this news, investors pulled $3 billion from the stablecoin in just a matter of 3 days. As expected, USD Coin (USDC) crashed, breaking its dollar peg and the illusion of being a dollar equal. While it regained its dollar peg soon after, the event triggered a liquidity crisis in USD Coin (USDC). The effects of the last week's market turmoil can still be felt, and USD Coin (USDC) is finding it more challenging to hold onto its dollar peg.

Tether (USDT) fared far better than USD Coin (USDC) amid the banking crisis. It maintained its peg and also received a part of the market share from the USD Coin (USDC). However, Tether (USDT) is beleaguered by its own problems.

Tether (USDT) has become the biggest stablecoin in the market. While it's pegged to the US dollar, analysts have always wondered whether Tether (USDT) has enough reserves to maintain the dollar peg. The questions arose after it was issued in 2014, but Tether (USDT) never released audited statements. In a 2021 legal case, it was alleged that Tether (USDT) lied about its reserves, and the New York Attorney General then asked them to file quarterly attestations. However, attestations are not audits. So, Tether (USDT) does attest to holding 82% of all reserves in cash & cash equivalents. However, there is no information about where those assets are held or invested, or about their risk profile.

Regulators have taken a hard look at stablecoins, and they are worried. With Terra going bust last year, the confidence in stablecoins is falling fast.

TMS Network Rally Continues Even When Stablecoins are Falling

In a crypto economy where stablecoins cannot retain their peg against the dollar, TMS Network (TMSN) is rallying. TMS Network is a DEX that brings the benefits of decentralized exchanges to traditional traders. It allows traders to trade cryptocurrencies, forex, CFDs, and stocks. For crypto traders, TMS Network (TMSN) brings an alternative to centralized exchanges like FTX. TMS Network (TMSN) is fast, low-cost, and transparent.

TMS Network (TMSN) opened its presale to high demand and raised $500,000 in stage 1 presale at a price point of $0.025. As the news of the new DEX spread in the market, more investors lined up for stage 2 presale. Stage 2 presale saw TMS Network (TMSN) raise a total of $3 million. The stage 2 presale price of $0.041 means that TMS Network's (TMSN) price has risen by almost 100% from its stage 1 presale.

The demand for TMS Network (TMSN) still remains high. The momentum has assured experts that it will post a 4-figure growth and create well above 1,000% returns for its investors.

Presale: https://presale.tmsnetwork.io

Website: https://tmsnetwork.io

Telegram: https://t.me/TMSNetworkIO

Twitter: https://twitter.com/@tmsnetwork_io