Caixin
Oct 16, 2018 08:50 PM
FINANCE

Dollar-Pegged Cryptocurrency Drops to 18-Month Low on Transparency Concerns

Recent fluctuations in the price of cryptocurrency Tether have been due to an investor sell-off triggered by weakening market sentiment. Photo: VCG
Recent fluctuations in the price of cryptocurrency Tether have been due to an investor sell-off triggered by weakening market sentiment. Photo: VCG

Tether, a cryptocurrency pegged on a one-to-one basis with the dollar, saw its price drop to an 18-month low of $0.92 Monday before recovering, according to data provider CoinMarketCap, showing that distrust in the digital token is growing.

Unlike other cryptocurrencies, which fluctuate over time and can be volatile, stablecoins are pegged to a relatively stable asset such as the U.S. dollar and are therefore seen as more reliable stores of value. A single Tether token can be redeemed for $1, according to the platform.

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