After a steady price drop in recent weeks, Tether remains at the center of the debate over stablecoins. Earlier this week, Tether’s market cap shrank below the $70 billion mark. At the time of writing, USDT’s total market cap stands at $69.14 billion, according to CoinMarketCap.

Tether’s decline started last month when Terra’s network collapsed, which had a bigger market effect for a long time. The situation was exacerbated by the high volatility in the cryptocurrency market currently.

Mass Liquidation of Tether Market Cap

While USDT is under constant pressure from market factors, the stablecoin witnessed an interesting situation on Friday. The token saw a massive $800 million disappear from its market cap in seconds.

From maintaining a market cap of just around $70 billion, Tether quickly fell to $69.20 billion. On Twitter, investor CryptoWhale described the development as “has $800 million” magically disappeared from USDT Market capitalization in seconds.”

When a concerned follower wondered what the situation would be if the stablecoins betrayed, CryptoWhale warned of the possibility. He said it’s more of a ‘when’ question than ‘if’.

Crypto holdings on exchanges unsafe

The crypto investor also predicted that all major exchanges could shut down everything on their platforms. He indicated that crypto holdings stocked on the exchanges are at risk.

“Anyone holding crypto on exchanges is getting screwed. Expect all the greats to stop everything.”

On Wednesday, there was a lot of speculation that USDT was being supported by low-rated debt. There were rumors that USDT support included Chinese or Asian trade papers. However, the company dismissed these rumors by stating that they were “completely false”.

Tether explained that the commercial paper represents less than a quarter of the token’s support reserves. It added that 47% of its reserves are backed by the US Treasury.

Anvesh reports major crypto adoption announcements by institutions and popular personalities. Anvesh has been associated with the cryptocurrency industry since 2016 and is a big believer in decentralized technologies. Follow Anvesh on Twitter at @AnveshReddyBTC and contact anvesh (at) coingape.com

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.





This post Suspicious Tether Wipe Off activity raises eyebrows

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