NYDIG: Stablecoins such as USDT are merely market trading tools and are not truly pegged to the US dollar.

Jinse Finance reported that Greg Cipolaro, Global Head of Research at NYDIG, stated that stablecoins such as USDC, USDT, and USDe are not truly pegged to the US dollar, but rather fluctuate based on market supply and demand. Essentially, they can only be considered as market trading instruments. The so-called "stability" of stablecoins is actually determined by arbitrage and market dynamics. For example, when the price falls below $1, traders buy in; when it rises above $1, traders sell. Users often misunderstand the real risks associated with these assets.