The crisis in Terra’s stablecoin UST has affected the entire crypto market and bitcoinIt plunged him into chaos.
The deterioration of the UST’s fixity to 1 dollar also shook confidence in other stablecoins.
Bitcoin volume dropped to $24,000 on small exchanges and as low as $26700 on Binance today. During this decline, the largest stablecoin Tether was stabilized at $1.
While Tether broke its stability to 1 dollar during the day and regressed to $0.94 levels, it is traded at $0.98 as of our news.
During these unstable movements, a dump also occurred in the USDT/TRY parity and Tether fell to 13.5 levels and bounced from here.
This imbalance in stablecoins has reduced the risk appetite in the market. Bitcoin was trading with a 5% loss, while losses in Ethereum rose to 10%.
The largest stablecoin tether is the backbone of the market. While the experts commented that if Tether collapses, the entire market collapses, the company made a statement.
The company announced that it will perform swaps between different networks to solve the liquidity problem.
In few minutes Tether will coordinate with a 3rd party to perform a chain swap, converting from Tron TRC20 to Ethereum ERC20, for 1B USDt and from Tron TRC20 to Avalanche, for 20M USDt. the #tether total supply will not change during this process.
— Tether (@Tether_to) May 12, 2022
The CTO of the company, Paolo Ardoino, appeared in his latest posts. He stated that someone made a lot of money thanks to FUD, and there was no problem with Tether.
FUD is making good money to few traders.
Seeing firms buying USDt < 1$ on kraken, sell it for >= 1$ on finex or redeeming on https://t.co/fB12xESSvB for 1$. https://t.co/cj9U7u28UC— Paolo Ardoino (@paoloardoino) May 11, 2022