Here is what the Financial Times has to say:
Traders have yanked $7bn from Tether since the world’s biggest stablecoin last week briefly lost its peg against the US dollar, intensifying concerns about the assets that underpin the global cryptocurrency market.
Tether’s market value has fallen by 9 per cent since May 12 to $76bn as tokens have been removed from circulation to meet redemption requests, CryptoCompare data show.
https://www.ft.com/content/db9c3f32-cd91-4149-9788-95b2046bea10
Tether claims their stablecoin is backed by US Treasury bills. I guess we are going to find out in real time if this is true.
So far they've been making the redemptions with real cash. But if at some point they can't, the whole crypto space will get roiled again.
More generally, the redemptions speak to a loss of confidence in stablecoins. Be careful out there
