# kaal:claim:3396522-004

**Claim.** Tether's growth in market capitalization, its stability around one dollar, and investors' use of it as a temporary safe haven provide some empirical support for the proposition that stable cryptocurrencies can create market stability.

**Type.** empirical  **Support.** evidenced

**Holds when.**

- support is partial and, on the authors' own framing, possibly only temporary

**Source quote.**

> The rise of an early stable cryptocurrency design, Tether, in terms of its total market capitalization,169 its stability around $1 value, and investors' uses of Tether as a temporary safe haven, provide some support for stable cryptocurrencies' ability to create market stability.

**From.** Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, *Stable Cryptocurrencies* (2019), IV. Stable Cryptocurrencies, 10. Market Stability, page 45

**Cite as.** Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Stable Cryptocurrencies (2019). SSRN: https://ssrn.com/abstract=3396522

**Verify.** sha256 of source PDF `ef5031b16aa53476ed618f0bdf92601cd4affb893692c701134bd9cba3ea8acf` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20et%20al.%20-%202019%20-%20Stable%20Cryptocurrencies.pdf

**Topics.** economics, tokenomics, empirical-evidence

**Keywords.** tether, market-stability, stablecoins, safe-haven, empirical-evidence

**Superseded by.** A later claim revises this one. Prefer quoting: https://wulfkaal.github.io/claims/3411897-020

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