Are the stabilities of stablecoins connected?

【Author】 Binh Nguyen Thanh; Thai Nguyen Vu Hong; Huy Pham; Thanh Nguyen Cong; Thu Pham Thi Anh

【Source】JOURNAL OF INDUSTRIAL AND BUSINESS ECONOMICS

【影响因子】0.000

【Abstract】This study analyzes the interconnection of the stability of prominent stablecoins including Tether (USDT), USD Coin (USDC), Paxos Standard (PAX), TrueUSD (TUSD) and DAI from 23/11/2019 to 1/04/2021. We find (i) market price fluctuations vary across stablecoins, (ii) instabilities in USDT and USDC significantly drive those of other stablecoins but less convincing evidence for the reverse impact, and (iii) that increases (decreases) in USDT market prices significantly depress (raise) the market prices of the other stablecoins. Interestingly, the algorithmic stablecoin, DAI, is found to be less stable than its USD-backed counterparts.

【Keywords】Cryptocurrency; Stablecoin; Vector Autoregression

【发表时间】

【收录时间】2022-01-28

【文献类型】期刊

【主题类别】

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