Tether’s circulating supply drops, raising new concerns about stablecoin backing.

Investors withdrew more than $9 billion from Tether as it briefly fell from the $1 peg, raising new questions about the reserves that underlie the world’s largest stablecoin.

According to Coingecko data, the circulating supply of Tether has dropped from around $83 billion to $74 billion at press time.

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Tether’s circulating supply drops, raising new concerns about stablecoin backing.

The so-called stablecoins are meant to always have a value of 1 USD. But last Thursday, the price of USDT dropped to as low as $0.95 – amid panic over the collapse of UST and Luna.

Read more: https://cryptowallcity.com/tether-circulating-supply-drop-raising-concerns/