Over the past few hours, Tether’s USDT has been destabilizing and has lost its $1 peg. The community cites heavy selling pressure.
As of writing, USDT has been trading at 0.9958, continuously falling from its $1 peg.
USDT Down 0.41%
The screenshot below shows it is down by almost 0.41% on Thursday. Crypto Twitter community cites heavy selling pressure for the depeg.
Rising Balance on 3pool
The panic sentiment started as the USDT balance on Curve’s 3pool started rising to 72%. 3pool consists of stablecoins USDT, USDC, and DAI.
An increasing USDT balance may indicate that traders might be looking to exchange their USDT for other stablecoins.
However, Paolo Ardoino, the CTO of Tether, believes that attackers are capitalizing on the general sentiment. He wrote on Twitter:
“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.”
Some community members believe that it is a temporary movement. Crypto Investor Scott Melker explained:
“A stablecoin depeg is not determined by its price on an exchange, but rather by whether you can redeem 1.1 from the source.”
Read our complete beginner-friendly guide to stablecoins here.
Got something to say about Tether (USDT) depeg or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or Twitter.
For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
