There has been a massive influx of stablecoins in the cryptocurrency industry. The purpose of these currencies is very simple: maintain their peg to the US Dollars at all times. Surprisingly, that is a very difficult task for nearly all stablecoins, especially during these volatile times. None of the current stablecoins on the market can effectively do so without interruptions.
It is quite interesting to see how volatile stablecoins can get despite their “guaranteed” backing by $1 at all times. Every Tether, USD Coin, Paxos, Dai, BittUSD, nUSD, TrueUSD, and Gemini Dollar needs to maintain a value of $1 at all times. After all, these currencies are only worth that amount, and never more or less.