CTO Of Tether Paolo Ardoino Calms Fears of USDT De-Peg
Tether (USDT) recently reached a market cap high of about $84 billion.
The small difference between USDT and the dollar made people worry that the world’s biggest stable coin could be in trouble.
Curve’s 3Pool, which is one of the best places to trade stablecoins, was full of USDT buyers, which basically meant that traders were buying more stablecoins. The change upset the ideal split of 33.33% for each of its three stablecoins, USDT, USDC, and DAI. This caused the USDT to be different from the $1.
In the last few months, Tether has gotten back to being the most popular stablecoin. This is especially true after the banking crisis, when investors ran away from USDC.
USDT reached a high of about $84 billion. So, people worry that a de-peg event would be terrible for the business.
When the USDC stopped being tied to the dollar earlier this year, it got the attention of regulators. These fears will get worse if a similar event happens at the same time that some of the biggest names in crypto are facing a harsh crackdown.
Crypto experts, on the other hand, said that there was never a de-peg because a stablecoin’s de-peg isn’t based on its price on an exchange, but rather on whether or not you can swap one stablecoin for another from the source.
Tether’s CTO, Paolo Ardoino, wrote, “Recent market events have caused a lot of fear, uncertainty, and doubt.”
“Markets are edgy in these days, so it’s easy for attackers to capitalize on this general sentiment. But at Tether we’re ready as always. Let them come. We’re ready to redeem any amount.”
Even though it’s still not clear who is selling USDT, the difference is thought to be caused by an address called CZSamSun, which borrowed 31.5 million USDT and traded it for USDC.
Using 17,000 ETH and 14,000 stETH as security, the whale in question is said to have turned the entire stash into USDC through the 1inch Network before making deposits of $10 million and $21 million to Aave v2 and v3 using those amounts. Soon after, the borrower took out a USDT loan of $12 million from v3 and put the money in v2.
