Bitcoin's price can move sharply, while USDT and USDC usually stay near one US dollar. Tokens designed to track the value of a particular asset are called stablecoins. The name describes a price target, not a guarantee that the market price or redemption will always hold.
Common terms
- Peg: The reference value a token aims to track. Dollar-linked tokens usually target $1 per token.
- Depegging: A market price moving away from that target.
- Reserves: Assets held to back issued tokens. Check whether they consist only of cash or include short-term government bonds and other assets.
- Redemption: Returning tokens to an issuer or another designated party to receive the corresponding asset under specified conditions.
Different ways to maintain a peg
Some stablecoins hold reserves such as cash and government bonds. Others use overcollateralized crypto assets, or rely on algorithms and price relationships with another token. Some combine these structures. Sharing the name “stablecoin” does not mean sharing the same risks.
USDT and USDC also have different issuers. Consult each issuer's official information on reserves, eligible redeemers, minimum amounts, supported countries and networks. Buying a token on an exchange does not give everyone the same right to redeem directly with its issuer.
Why can the won price vary if the target is $1?
A rise in the won-per-dollar exchange rate also affects the won price of a dollar-linked token. Domestic demand and liquidity at each exchange can make it trade above or below the converted price. USDT trading at ₩1,400 does not prove that the dollar exchange rate is exactly ₩1,400.
Tokens with the same name may also differ in their issuing network, whether they are officially issued or whether a bridge was used. Before sending, verify the destination's supported network and the contract address. A stable price target and a safe transfer are separate questions.
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