Is the $1 value of stablecoins misleading?

Greg Cipolaro, Global Research Director at NYDIG, argues that stablecoins like USDC, USDT, and USDe are not actually tied to the U.S. Dollar, but rather fluctuate according to market supply and demand. The recent $500 billion sell-off in the cryptocurrency market has brought to light the instability of stablecoins. During this period, it was observed that some assets, such as USDe, fell to $0.65 on Binance.

Cipolaro stated that the perceived stability of stablecoins actually stems from arbitrage and market dynamics. He pointed out that users often misunderstand the real risks associated with these assets.