The value of Tether (USDT), the largest stablecoin, has temporarily slipped with a small percentage creating FUD. Tether’s CTO said the company has enough reserves to cover USDT swaps. So he stated that there is no cause for alarm. However, there are allegations that Alameda has shorted a USDT de-peg. Meanwhile, previous FUD calls against the KuCoin crypto exchange turned out to be false.
Biggest stablecoin temporarily loses peg
The cryptocurrency market is on edge. Any negative news, speculation has the potential to damage the project involved. The price of USDT, the most important stablecoin in the crypto industry, dropped by a small percentage for a moment. This created another wave of fear, uncertainty and doubt. Paolo Ardoino, chief technology officer (CTO) of Tether, the largest stablecoin issuer, revealed on Twitter that the firm has transacted over $700 million USDT in the last 24 hours.
These unusually high-volume stablecoin swaps are likely due to the current bleeding trend in the crypto market as individual investors rush to trim losses in the volatile digital asset market. Specifically, Tether’s CTO explained that the company has sufficient reserves to cover USDT swaps. That’s why he said there was no cause for alarm. Currently, USDT maintains its regular price of $0.9998.
“Alameda tried to launch a USDT de-peg!”
Crypto markets have become more volatile since the issues with FTX and Alameda surfaced. Bitcoin and all other major cryptocurrencies hit new year lows. Therefore, extreme panic was felt in the market. However, there was confusion when Tether (USDT) de-peg with a strong bearish wave dominating the market. Rumor has it that SBF’s Alameda Research is trying to short the USDT token to recoup some of its debts.
There are allegations that Alameda is constantly using USDT for arbitrage purposes. HsakaTrades, a crypto enthusiast with a substantial Twitter following, claimed that Alameda is attempting to launch a USDT de-peg. In this context, HsakaTrades shared:
Alameda is trying to launch a USDT depeg with a small 250K on-chain visible TX that will cause fear. USDT parities started to rise…
According to Hsaka, Alameda Research is shorting USDT by procuring the USDC stablecoin on the AAVE platform, thereby borrowing USDT. Also, the platform converts USDT to USDC and the transaction was recorded on Etherscan. If the rumor is true, Tether reserves will need to burn more USDT than before.
Claims about KuCoin turned out to be false
cryptocoin.comAs you followed earlier, speculations have erupted that the KuCoin exchange is experiencing a possible shortage of stablecoin funding in light of a $300 million pullback. Data from analytics firm Nansen revealed that KuCoin appears to be the most withdrawn exchange. It even proved to be more than the embattled FTX.
However, upon further examination of the on-chain data, it was revealed that the exchange only moved $300 million worth of USDT from the Ethereum network to the Tron Blockchain. Alicia Schulhof, managing director of KuCoin, expressed her criticism of the misinformation shared about the exchange in the crypto community.
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