Bitcoin (BTC) and crypto markets saw fresh volatility on Nov. 10 after stablecoin Tether (USDT) de-pegged from the U.S. dollar.
Tether exec: USDT ‘no problem’
From Cointelegraph Markets Pro and Transaction view USDT hit a low of $0.971 on Bitstamp on the day amid fears that the largest stablecoin by market cap could fall further.
those fears evidence Troubled exchange FTX and sister company Alameda Research are trying to short USDT.
Now, as regulators step up scrutiny of the industry, both companies are caught in a crisis reminiscent of the Terra debacle, and both have clashed with the cryptocurrency community and beyond.
The entire cryptocurrency price was affected, with BTC/USD hitting a more than two-year low of $15,638 on Bitstamp.
Commenting on USDT’s movements for the day, CTO Paolo Ardoino urged calm.
“Tether has processed around 700 million exchanges in the last 24 hours. No issues. We move on,” he said comfirmed in a tweet.
The news echoes the official stance that Tether had already released the day before.in a blog postthe USDT issuer said it had no direct contact with FTX or Alameda.
“Tether has no exposure to Alameda Research or FTX at all,” it wrote.
“Tether tokens are 100% backed by our reserves, which are backed by more assets than liabilities.”
Tron DAO Reserve says it will buy $300 million
Michaël van de Poppe, founder and chief executive of trading firm Eight, is another of many calling for market participants not to overreact to persistent volatility.
Related: Tron’s stablecoin USDD loses its peg to USD amid suspected Alameda Research sell-off
“There is a panic across the market as USDT de-pegged from the dollar. It always happens at these times. No need to get overly nervous, it’s likely to go back to 1:1,” he said. debate.
USDT briefly dipped below $0.96 after Terra’s LUNA, quickly regaining its peg to the U.S. dollar.
“The exchange rate is irrelevant, as long as Tether can convert every 1 USDT into 1 USD,” part of a tweet by popular analyst Duo Nine continue.
“The big whales just go to Tether and get dollars at par. Don’t be fooled! The only reason the peg won’t recover is that Tether doesn’t have 100% coverage.”
Meanwhile, in a strange development, the decentralized cryptocurrency reserve Tron DAO Reserve Announce $300 million in USDT will be purchased on the open market.
It said in a tweet that its aim was to “protect the entire blockchain industry and crypto market,” but gave no further details.
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