TerraUSDcollapse in stablecoinseriously undermined their trust. For this reason, large outflows in some small stablecoins caused a short-term depeg (destabilization of 1 dollar).
largest stablecoin TetherWe observed an increase in their concerns about. So much so that the large-scale sales caused even Tether to experience depeg for a short time.
Fortunately, Tether quickly regained much of its peg to $1.
Expressing that there is an uneasiness in the way investors look at the market due to stablecoins, Cryptoquant founder Ki Young Ju tagged Tether CTO Paolo Ardoino and asked if Tether’s $ 75 billion reserve is really supported.
“We are afraid of the UST collapse and the market wants spot Bitcoin ETFs.
Regulators, institutions and crypto investors are waiting for your response on whether the $75 billion USDT is fully backed.”
When Ju was accused of spreading Tether FUD after this post, he reminded that this is not a FUD, and that Tether is among the reasons why the SEC does not play spot Bitcoin ETFs.
Responding to Ju’s share, Ardoino spoke assertively and USDTHe said that we have the liquidity to buy back .
“We met the $7 billion demand in 48 hours in the blink of an eye. How many institutions can do the same thing?
If the market wants, we can continue this. We have all the liquidity to deal with big sales and pay them all. 1 to 1. Yes Tether is fully supported.”
We have redeemed 7B in 48h, without the blink of an eye. How many institutions can do the same?
We can keep going if the market wants, we have all the liquidity to handle big redemptions and pay all 1-to-1.
Yes, Tether is fully backed.— Paolo Ardoino (@paoloardoino) May 17, 2022
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