Tether CTO Paolo Ardoino downplays USDT day-peg fears

USDT’s slight divergence from the greenback raised concerns that the world’s largest stablecoin could be under pressure.

Curve’s 3 pool – one of the top pools for stablecoin trading – was flooded with USDT sellers, essentially indicating that traders were accumulating other stablecoins. The move counterbalanced the ideal breakdown by 33.33% for each of its three stablecoins – USDT, USDC and DAI. This was followed by a divergence of USDT from $1.

• In recent months, Tether has managed to reclaim its dominance in the stablecoin market, especially after the banking crisis that saw investors flee USDC.
• USDT touched a peak near $84 billion. Hence a D-peg event is expected to be disastrous for the economy.
• The USDC de-peg attracted regulatory attention to the stablecoin space earlier this year. Those concerns will be amplified if another similar event occurs at a time when some crypto heavyweights are facing a sharp crackdown.
• Crypto experts, however, noted There was never really a D-peg because “a stablecoin is not determined by its price on a D-peg exchange, but rather whether you can redeem 1:1 from the source.”
• Acknowledging the FUD fueled by recent market events, Tether’s CTO, Paolo Ardoino, tweeted,

“Markets are very volatile these days, so it is easy for attackers to capitalize on this general sentiment. But at Tether we are ready as ever. Let them come. We are ready to redeem any amount.”

• While it is still unclear who is dumping the USDT, there has been divergence Held responsible To a whale named CZSamSun who borrowed 31.5 million USDT and swapped it for USDC.
• Using 17,000 ETH 14,000 stETH as collateral, the whale in question converted the entire loaned funds to USDC through the 1 Inch Network before depositing $10 million and $21 million, respectively, to Aave v2 and v3. Gave. Shortly thereafter, the borrower received a USDT loan of 12 million from v3 and deposited it into v2.