Cryptoverse: Stablecoins wend wobbly way into the unknown

Smartphone with Tether logo is placed on displayed U.S. dollars in this illustration taken, May 12, 2022. REUTERS/Dado Ruvic/Illustration

(Reuters) - Stablecoins, the safe and strait-laced cousins of crypto, are looking distinctly dicey.

Tether, USDC and others lost their prized pegs to the dollar last week in a bout of market mayhem that shook faith in these coins that were designed to sidestep crypto volatility. But was it an isolated outburst, or are they losing their soul?