- US tech chief Paolo Arduino says a “price disparity” is to blame for the alleged depegging of USDT.
- Ardoino believes that the USDT depeg is a flaw, and the stablecoin is trading within 10 basis points of parity on Binance and Coinbase.
- Tether assured traders no exposure to FTX or Alameda after USDT slipped below the $1 peg.
The currency is temporarily de-pegged to the US Dollar (USDT) of the US dollar according to data from Coinbase and CoinMarketCap. the strading tablecoin at $0.96 before recovering to the $0.99 level.
USD Tether CTO Paolo Arduino The event was described as a “glitch,” but experts in the crypto community believe that USDT has suffered a decoupling due to shock waves from the original FTX token. The FTT crash and the subsequent crypto market crash. In the end, it appears that CoinGecko has been blamed for the price discrepancy, causing it to be linked to a data issue.
The US dollar suffers from a temporary decoupling
USD Tether traded hands as low as $0.96 before rebounding back to $1.01, based on price data from CoinGecko and CoinMarketCap. Paolo Arduino, Tether’s chief technology officer, considered the event to be a malfunction of the encrypted data-collection platforms. However, in light of recent developments in cryptography, FTT’s The meltdown and Binance’s plan to acquire FTX, Experts believe that the event was a depeg.
USDTthe largest stablecoin, collapsed under increasing pressure From the bearish cryptocurrency market and traders are withdrawing funds from riskier assets such as bitcoin and cryptocurrencies. What’s more, Tether has informed traders that it has no exposure to Samuel Bankman-Fried’s FTX and Alameda Research.
Cryptocurrency influencers and experts believe that a fight between two leading cryptocurrency exchanges FTX and Binance led to the change of USDT. The crisis started when Binance criticized FTX CEO Samuel Bankman-Fried For his opinion on DeFi regulation, he then announced an open market sale of the original FTX token FTT for $584 million.
USDT started its decline as the friction between the two exchanges became public. In the end, FTX had to seek help from Binance during the liquidity crunch. Binance has signed a letter of intent to purchase FTX. However, even though the USDT price suffered a temporary unwind as the disaster sent shock waves through the crypto industry.
See USDt price variation on coingecko. While USDt is trading close to parity (+-10 basis points), coingecko is at 3% of parity.
Seems to me like a glitch.
Binance, Bitfinex, and Coinbase all trade within 10 bits per second of parity.
– Paoloardoino November 9, 2022
USDT depeg response from CoinGecko
Bobby Ong, COO of CoinGecko, apologized to the depeg about USDT and mentioned that there was a data issue from the API connection with a few cryptocurrency exchanges. CoinGecko has corrected the issue and is keeping a close eye on it.
Sorry about the USDT FUD on our part. The rope has not been untied. There was a data issue on our end caused by API connection issues with some exchanges. We’ve fixed the issue but are keeping a close eye on things. https://t.co/ZWYC7qHImv
– Bobby Ong November 9, 2022
USDT is SAFU but Bitcoin price suffered a drop
The USDT depeg It was a technical issue, according to CoinGecko’s COO. In this case, the holders of USDT and the stablecoin are SAFU, which means they are safe from the volatility of the cryptocurrency market.
Bitcoin drops to multi-year lows of $17,000 It is the result of selling pressure across the stock exchanges. Bitcoin price has suffered from the impact of uncertainty and loss of confidence among cryptocurrency traders from the collapse of the internal FTT.
Bitcoin price It recovered from the decline and jumped above $17,500. However, analysts are bearish as the assets return to the key psychological level of $20,000. As the results of the US midterm elections begin to roll out, several candidates known as pro-crypto have taken office.
The US midterm election result So it is favorable for the regulation of bitcoin and cryptocurrencies, so far. This is an evolving update and there will be greater clarity once discussions are made about the stablecoin bill or crypto asset regulation.
Thus, the US dollar appears to have suffered a pullback due to technical issues with CoinGecko. CTO Paolo Arduino’s assessment was accurate and Tether is now exchanging hands at $1.01, above the $1 peg.
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