Breaking: Tether (USDT) Stablecoin Depegs from $1 Level
Summary: Tether (USDT) has seen a surge in its dominance in the Curve 3pool liquidity pool due to massive sales by whales. This has caused concerns and the current price of Tether is $0.9971, representing a loss of 0.25% over the previous 24 hours. Todays low was $0.9958.
Tether (USDT), the largest stablecoin in the cryptocurrency market, has seen a jump in its dominance inside the Curve 3pool liquidity pool as a result of massive sales by whales. Concerns regarding the stablecoin’s stability and fear about USDT’s depegging have been sparked by the unprecedented surge of USDT.
The current makeup of the Curve 3pool has been drastically altered by the recent dumping of USDT by whales. Over a thirteen percent share of the whole liquidity pool is presently held by USDT. Since the FTX crash in November 2022, this is the highest it has been.
Exact Reason Unknown
No one knows whether the recent rise in USDT inflows is the consequence of fear, uncertainty, and doubt (FUD), or if it’s being driven by insider information. The de-peg of USDT after the Terra collapse is a major source of criticism.
On May 12th, 2022, it was reported that the token had fallen 4.8%, to 0.9508. This was the lowest price it has been since the 2017 cryptocurrency meltdown. Tether (USDT) had a major depegging event on June 6, 2022. When it began trading on ValleySwap at a rate of $0.18 per USD Coin (USDC). Today, it went all the way till $0.9958.
Pump and Dump Activity
Further context has been provided by Lookonchain, a blockchain explorer, which has linked particular addresses to the pump and dump activity involving USDT.
CZSamSun, who allegedly shorted USDT on Aave V2 following its depegging, is a key figure in the USDT depegging situation. At a cost of $0.9978 per USDT, CZSamSun borrowed 31,544,278 USDT from Aave V2. And converted it to USDC, for a total of 31,475,408. More evidence of a well-thought-out plan to take advantage of the depegging issue comes in the form of a 10 million USDC deposit by CZSamSun back into Aave V2.
Big Blow to the Sector
Concerns about Tether’s stability and trustworthiness have been rekindled with the recent dumping of USDT by whales and its consequent influence on the Curve 3pool. The current price of Tether on exchange is $0.9971, representing a loss of 0.25% over the previous 24 hours. One of the biggest and most extensively utilized stablecoins in the cryptocurrency industry, USDT has a market valuation of over $83.5 billion.