USDT in turmoil: The stablecoin Tether falls victim to an explosive wave of speculation – BeinCrypto

USDT was singled out at the start of the crypto winter, when it lost parity with the dollar. With the crisis, stablecoins seem threatened… but the fault would not lie solely with the whims of the market.

An upcoming dive for USDT?

Speculation has never done cryptocurrencies any good and yet it is still as present as ever. The great generator of bubbles and bear markets has been decried by crypto bigwigs since the crisis began. Nevertheless, profit and trading freaks continue to bet as if nothing had happened.

Since the start of the crypto winter, stablecoins have remained the prime targets of the crisis. As USDD continues to swirl around and USTerra has wreaked havoc, so-called “stable” assets continue to be the talk of the town. Now it’s up to USDT to shake. Indeed, the token seems in very bad shape since traders and other hedge funds fell back on its course. The latest fashion ? Placing short positions for traders and, for others, selling the Tether coin short. All through broker companies such as Genesis Global Trading. According Wall Street Journalshort-term transactions by hedge funds would involve several hundred million dollars.

Malicious behavior towards the asset?

So is USDT weakening again? Will speculation cause the stablecoin to plunge further? According to Paolo Ardoino, the founder of Tether, there would be no risk. Furthermore, the speculation that plagues the price of USDT would be more malicious than serious.

From the start, it really felt like a coordinated attack, with a new wave of FUD, troll armies, clowns, etc. […] Goal: Create enough pressure, in the billions range, causing a ton of cash outflows to hurt Tether’s liquidity and ultimately buy the tokens back at a much lower price.

Excerpt from Paolo Ardoino’s tweet regarding the new wave of USDT price speculation

Source: Paolo Ardoino’s Twitter account

There’s no point in panicking, says Tether founder

The situation is certainly unpleasant but for Ardoino, USDT has sufficient reserves to survive a first wave of weakness. According to him, the motives of speculators are still unclear. Simple profit madmen or vigilantes wanting revenge for Tether’s loss of parity with the dollar, the profiles remain uncertain.

In order to scare away the bravest, the entrepreneur continues to show his credentials. In line with the audit announced last week, Paolo Ardoino wants to show that his play has always kept its commitments while supporting the pressure. Moreover, it would never have really lost its parity.

As we’ve always said, Tether actually had/has >= 100% collateral, never missed a redemption, and all USDT is redeemed at $1. In 48 hours, Tether processed 7 billion redemptions, an average of 10% of our total assets, which is almost impossible even for banking institutions.
In over a month, Tether processed 16 billion redemptions (~19% of our total reserves), proving once again that our operations, wallet, banking infrastructure and team are strong and proven.

Excerpt from Paolo Ardoino’s tweet regarding the new wave of USDT price speculation

Is the phenomenon temporary or will USDT have to fight through the winter? Be that as it may, the crypto sphere seems not to have quite rid itself of its bad elements.

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USDT in turmoil: The stablecoin Tether falls victim to an explosive wave of speculation – BeinCrypto


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