{"id":11700,"date":"2022-11-10T13:52:59","date_gmt":"2022-11-10T17:52:59","guid":{"rendered":"http:\/\/cryptocornercafe.com\/cafe\/?p=11700"},"modified":"2022-11-10T13:52:59","modified_gmt":"2022-11-10T17:52:59","slug":"amid-ftx-rumors-tethers-usdt-peg-of-1-wobbles-whats-going-on","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2022\/11\/10\/amid-ftx-rumors-tethers-usdt-peg-of-1-wobbles-whats-going-on\/","title":{"rendered":"Amid FTX Rumors Tether\u2019s USDT Peg Of $1 Wobbles \u2013 What\u2019s Going On?"},"content":{"rendered":"

The crypto market still seems to be in the grasps of FTX<\/a> and Alameda. Currently, rumors are circulating that Tether\u2019s stablecoin USDT might be more affected by the downfall of FTX than it would like to admit.<\/p>\n

Moreover, there currently seems to be an attack on USDT as a result of which Tether (USDT) briefly lost its usual peg to $1. The largest stablecoin by market cap was trading below $0.9400 temporarily at Kraken, other exchanges saw minor deviations.<\/p>\n

FTX FUD leads to Tether depeg, Kraken, 1-day-chart. Source: TradingView<\/a><\/p>\n

Sam Bankman-Fried company Alameda, which borrowed $250,000 USDT from Aave and exchanged it on Curve this morning, may be behind the attack. The address is clearly attributable to Alameda.<\/p>\n

Speculation on Twitter has it that Alameda is trying to initiate a USDT depeg with his on-chain visible transaction to trigger fear. He could sell USDT short, though it is not clear at this time what the company\u2019s total trading position is.<\/p>\n

Some voices in the crypto community suspect that the strategy is multi-layered and a huge attempt to get everything back in a single trading attempt. Anonymous trader \u201cHsaka\u201d provided the following thesis on Twitter:<\/p>\n

The 250k usdt short is not the most important move imo, more about the second order effect re usdt perps and related positioning around that<\/strong><\/p>\n

Especially assuming it is the ~$300m ftx withdrawal entity that still holds $100m+ usdt. I still don\u2019t know anything about CEX activity.<\/strong><\/p>\n

alameda trying to initiate a usdt depeg with a smol 250k onchain visible tx that will generate fear<\/p>\n

usdt pairs start risingsolusdt perps that had been giga shorted squeezealameda owns a lot of solsell post squeeze, usdt recovers, profit?<\/p>\n

ALL SPECULATION. I AM A CLUELESS WOLF https:\/\/t.co\/tNoocbUnzO<\/a><\/p>\n

\u2014 Hsaka (@HsakaTrades) November 10, 2022<\/a><\/p>\n\n

FUD Is Nothing New For Tether<\/h2>\n

At the same time, voices are increasing that the aggressor specifically wants to spread FUD in order to trigger a similar run on Tether (USDT) as on FTX and its FTT tokens. However, a short-term decoupling from the dollar peg is nothing new for Tether and was always a reason for haters spreading rumors.<\/p>\n

Tether CEO Paolo Ardoino was quick to dismiss any rumors. Already yesterday, Tether released a statement in which it assured that it had no exposure to FTX.<\/p>\n

#tether<\/a> processed ~700M redemptions in last 24h.No issues.We keep going.<\/p>\n

\u2014 Paolo Ardoino (@paoloardoino) November 10, 2022<\/a><\/p>\n\n

After the LUNA crash, Tether briefly grazed $0.90 and restored its peg within a couple of hours. Due to the removal of Alameda\/FTX as the main USDT market maker and minter, there may be temporary major deviations.<\/p>\n

People are not taking any chances and selling USDT for USDC or BUSD, just in case. Alistair Milne, CIO of Altana Digital Currency Fund, commented:<\/p>\n

Tether has been FUD\u2019ed and attacked longer than FTX has existed. They endured a bigger bank run than FTX and passed with flying colours. Perhaps there\u2019s a different reason they get so much attention while FTX got a pass?<\/strong><\/p>\n

Other voices believe that the rumors will not lead to a full, prolonged depeg if Tether is indeed hedged 1:1, as evidenced by the reserves. Even Vitalik Buterin spoke up and defended Tether.<\/p>\n

I have to admit, I\u2019ve been very critical of @Tether_to<\/a> in the past, and their transparency is still not nearly what I think an asset-backed coin should have, but especially given what\u2019s happened to so many other big-money hotshots this bear, they\u2019ve exceeded my expectations!<\/p>\n

\u2014 vitalik.eth (@VitalikButerin) November 9, 2022<\/a><\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

The crypto market still seems to be in the grasps of FTX<\/a> and Alameda. Currently, rumors are circulating that Tether\u2019s stablecoin USDT might be more affected by the downfall of FTX than it would like to admit.<\/p>\n

Moreover, there currently seems to be an attack on USDT as a result of which Tether (USDT) briefly lost its usual peg to $1. The largest stablecoin by market cap was trading below $0.9400 temporarily at Kraken, other exchanges saw minor deviations.<\/p>\n

FTX FUD leads to Tether depeg, Kraken, 1-day-chart. Source: TradingView<\/a><\/p>\n

Sam Bankman-Fried company Alameda, which borrowed $250,000 USDT from Aave and exchanged it on Curve this morning, may be behind the attack. The address is clearly attributable to Alameda.<\/p>\n

Speculation on Twitter has it that Alameda is trying to initiate a USDT depeg with his on-chain visible transaction to trigger fear. He could sell USDT short, though it is not clear at this time what the company\u2019s total trading position is.<\/p>\n

Some voices in the crypto community suspect that the strategy is multi-layered and a huge attempt to get everything back in a single trading attempt. Anonymous trader \u201cHsaka\u201d provided the following thesis on Twitter:<\/p>\n

The 250k usdt short is not the most important move imo, more about the second order effect re usdt perps and related positioning around that<\/strong><\/p>\n

Especially assuming it is the ~$300m ftx withdrawal entity that still holds $100m+ usdt. I still don\u2019t know anything about CEX activity.<\/strong><\/p>\n

alameda trying to initiate a usdt depeg with a smol 250k onchain visible tx that will generate fear<\/p>\n

usdt pairs start risingsolusdt perps that had been giga shorted squeezealameda owns a lot of solsell post squeeze, usdt recovers, profit?<\/p>\n

ALL SPECULATION. I AM A CLUELESS WOLF https:\/\/t.co\/tNoocbUnzO<\/a><\/p>\n

\u2014 Hsaka (@HsakaTrades) November 10, 2022<\/a><\/p>\n

FUD Is Nothing New For Tether<\/h2>\n

At the same time, voices are increasing that the aggressor specifically wants to spread FUD in order to trigger a similar run on Tether (USDT) as on FTX and its FTT tokens. However, a short-term decoupling from the dollar peg is nothing new for Tether and was always a reason for haters spreading rumors.<\/p>\n

Tether CEO Paolo Ardoino was quick to dismiss any rumors. Already yesterday, Tether released a statement in which it assured that it had no exposure to FTX.<\/p>\n

#tether<\/a> processed ~700M redemptions in last 24h.No issues.We keep going.<\/p>\n

\u2014 Paolo Ardoino (@paoloardoino) November 10, 2022<\/a><\/p>\n

After the LUNA crash, Tether briefly grazed $0.90 and restored its peg within a couple of hours. Due to the removal of Alameda\/FTX as the main USDT market maker and minter, there may be temporary major deviations.<\/p>\n

People are not taking any chances and selling USDT for USDC or BUSD, just in case. Alistair Milne, CIO of Altana Digital Currency Fund, commented:<\/p>\n

Tether has been FUD\u2019ed and attacked longer than FTX has existed. They endured a bigger bank run than FTX and passed with flying colours. Perhaps there\u2019s a different reason they get so much attention while FTX got a pass?<\/strong><\/p>\n

Other voices believe that the rumors will not lead to a full, prolonged depeg if Tether is indeed hedged 1:1, as evidenced by the reserves. Even Vitalik Buterin spoke up and defended Tether.<\/p>\n

I have to admit, I\u2019ve been very critical of @Tether_to<\/a> in the past, and their transparency is still not nearly what I think an asset-backed coin should have, but especially given what\u2019s happened to so many other big-money hotshots this bear, they\u2019ve exceeded my expectations!<\/p>\n

\u2014 vitalik.eth (@VitalikButerin) November 9, 2022<\/a><\/p>\n

<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-11700","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/11700","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=11700"}],"version-history":[{"count":0,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/11700\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=11700"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=11700"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=11700"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}