Tether Executive: “No Issues” With USDT
Data from Cointelegraph Markets Pro and TradingView showed that USDT hit as low as $0.971 on Bitstamp on the day amid fears that the largest stablecoin by market cap could drop further.
These concerns have been raised by evidence that the FTX exchange and sister company Alameda Research are attempting to short USDT.
Right now, in the midst of a crisis reminiscent of the Terra debacle, both companies have fallen to the cryptocurrency community’s fault and beyond as regulators have stepped up scrutiny of the industry.
The impact was felt across cryptocurrency prices, with BTC/USD hitting a two-year low of $15,638 on Bitstamp.
BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView
Commenting on USDT’s movements on the day, CTO Paolo Arduino urged calm.
“Tether has processed nearly 700 million refunds in the last 24 hours. No issues, no issues,” he confirmed in a tweet.
This message reiterated the official position of Tether that had already been published the day before. In a blog post, the USDT issuer stated that it had no direct exposure to FTX or Alameda.
“Tether is completely unexposed to Alameda Research or FTX,” it was reported.
“The peg token is 100% backed by our reserves, and the assets backing the reserves exceed the liabilities.”
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Michael Van de Poppe, founder and CEO of trading firm Eight, was among the many voices calling on market participants not to overreact to the ongoing volatility.
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“Panic across the markets as USDT decouples a bit from the US dollar. It always happens during these times. No need to get too stressed and it will likely jump back towards 1:1.”
During the aftermath of LUNA in Terra, USDT briefly fell below $0.96, quickly regaining its currency peg to the US dollar.
“The exchange rate is IRRELEVANT as long as Tether is able to redeem all 1 USDT for 1 USD,” continued part of a tweet from popular analyst Duo Nine.
“The big whales will go to Tether and get USD at par. Don’t be fooled! The only reason the peg won’t be restored is because Tether isn’t 100% covered.”