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On October 25th, the U.S. federal government shutdown entered its 24th day. More and more federal employees forced to take unpaid leave are facing the dilemma of not being able to pay their bills or mortgages, and many are forced to queue up at food banks for assistance. Jacobs, president of the local CDC union, stated that both parties are using the livelihoods of federal employees as bargaining chips in political negotiations, and that the current chaotic situation is unprecedented.On October 25, Lizhong Group responded to investors on an interactive platform, saying that the second phase of the companys project to produce 3.6 million ultra-lightweight aluminum alloy wheels annually in Mexico, with an output of 1.8 million wheels, has now been put into initial production. The company is actively promoting the running-in of the production line and the release of production capacity, striving to achieve the goal of full production and sales as soon as possible.According to news on October 25, from January to September this year, the cumulative transaction volume of new houses in Foshan was 23,611 units and 2.8425 million square meters, which was lower than the transaction volume in the same period last year; but the cumulative transaction volume of second-hand houses was 40,990 units and 5.008 million square meters, an increase of 3.3% and 4.3% year-on-year respectively.On October 25, Russian Presidents Special Representative Kirill Dmitriev said during his visit to the United States on the 24th that he believed that all parties were "very close" to reaching a diplomatic solution to the Ukrainian issue, and Russia was open to Ukraine obtaining third-party "security guarantees" in the future.According to the Suzhou Release WeChat official account on October 25th, a series of events were held in Zhangjiagang High-tech Zone (Tangqiao Town) on the morning of October 24th, including the groundbreaking ceremony for the dishwasher smart manufacturing project of Xiaomis ecological chain company, Qingmei Technology; the opening of the Zhangjiagang High-tech Zone Cross-border Empowerment Center; and the signing of the personal care small appliance smart manufacturing project of Xiaomis ecological chain company, Xiaobei Technology. According to reports, the dishwasher smart manufacturing project of Xiaomis ecological chain company, Qingmei Technology, has a total investment of 500 million yuan, with a planned annual production capacity of 500,000 dishwashers. Upon reaching full production, it is expected to generate an annual output value of 800 million to 1 billion yuan. The personal care small appliance smart manufacturing project of Xiaomis ecological chain company, Xiaobei Technology, has a total investment of 500 million yuan. Upon reaching full production, it is expected to have an annual production capacity of 15 million units and an annual output value of 2.4 billion yuan.

Crypto Collapse Intensifies as Stablecoin Tether Slides Below Dollar Peg

Jimmy Khan

May 13, 2022 09:56

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The collapse of TerraUSD, one of the world's biggest stablecoins, sent ripples through cryptocurrency markets on Thursday, driving Tether below its dollar peg and bringing bitcoin to 16-month lows.


Cryptocurrencies have been caught up in a sell-off in risk assets that has gained traction this week as data revealed rising US inflation, escalating investor concerns about the economic implications of aggressive central bank tightening.


According to CoinMarketCap statistics, the overall market value of all cryptocurrencies has dropped to $1.2 trillion, less than half of what it was in November.


According to CoinMarketCap price data, Tether, a reserve-backed stablecoin that is meant to be linked 1:1 to the US dollar, fell as low as 95 cents earlier in the worldwide session. It was last available for 99 cents.


Despite the volatility, US Treasury Secretary Janet Yellen said that stablecoins like as Tether and TerraUSD do not now constitute a systemic danger to the financial system.


"I wouldn't describe it at this size as a significant danger to financial stability," she said at a House Financial Services Committee hearing, "but they're developing extremely quickly and they bring the same kinds of hazards we've seen for centuries in connection with bank runs."


Bitcoin, the most valuable cryptocurrency, fell to $25,401.05 on Thursday, its lowest level since December 28, 2020. It was last trading at $28,751, down 0.9 percent.


It has lost more than a quarter of its value in the last eight sessions, or roughly $10,700, and is down 37 percent this year, trading far below the record of $69,000 it reached in November 2021.


According to Refinitiv statistics, Bitcoin's correlation with the Nasdaq composite has lately increased and is currently around its all-time high. So far this month, the Nasdaq composite has down approximately 8%.


Ether, the world's second-largest cryptocurrency, hit a new low of $1,700, its lowest since June 2021.


Unlike earlier financial market sell-offs, when cryptocurrencies were mostly unaffected, the present selling pressure in digital currencies has cast doubt on the larger premise that they are reliable repositories of value in the face of market turbulence.

NOT-SO-STABLECOINS

TerraUSD, a stablecoin, has been impacted by the instability and has broken its peg to the US dollar, plummeting as low as 31 cents on Wednesday. It was selling about 38 cents on Thursday.


"Unfortunately, the consequences of this event extend beyond the financial losses suffered by investors," said Anto Paroian, chief operating officer of crypto asset hedge fund ARK36.


"If not for the whole crypto world, but definitely for the stablecoins market, de-pegging will almost surely result in a significant regulatory risk."


Stablecoins are digital currencies that are linked to conventional assets like the US dollar. TerraUSD, on the other hand, is an algorithmic or "decentralised" stablecoin that was meant to keep its dollar peg by a complicated system that entailed replacing it with a free-floating token.


Following the collapse of Terra's algorithmic stablecoin and the linked Luna token on Thursday, the network's blockchain was paused to avoid assaults. However, the Terra blockade has subsequently been reopened.


Terraform Labs, the business behind the TerraUSD, has a non-profit partner called the Luna Foundation.


On Thursday, even stablecoins backed by conventional assets showed symptoms of stress.


According to CoinMarketCap statistics, Tether fell below its 1:1 dollar peg on Thursday, reaching a low of 95 cents around 0724 GMT.


Tether's chief technical officer, Paolo Ardoino, claimed in a Twitter Spaces conversation that the stablecoin has decreased its exposure to commercial paper in the previous six months and currently has the bulk of its reserves in US Treasury bonds.


Tether is the most valuable stablecoin by market capitalization, accounting for about 87 percent of the whole $169.5 billion stablecoin market, according to CoinMarketCap.


According to Denis Vinokourov, director of research at Corinthian Digital Asset Management, the enormous number of centralised cryptocurrency exchanges and decentralised venues, each with their own liquidity profile and credit risk, was contributing to price distortions throughout the market.

"The fragmented character of the market contributes to spillover effects into other stablecoins," Vinokourov stated.


The effect of TerraUSD's problems on investors is still being assessed by market participants.


The Federal Reserve of the United States cautioned on Tuesday in its biannual Financial Stability Report that stablecoins are susceptible to investor runs because they are backed by assets that might lose value or become illiquid in times of market stress.

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