MEXCBreaking: USDT Depegs Again As Whales Dump Largest Stablecoin
Whales have been selling off significant amounts of Tether (USDT), the largest stablecoin in the cryptocurrency market, leading to a surge in its dominance within the Curve 3pool liquidity pool. The unusual influx of USDT has triggered concerns about the stablecoin’s stability and caused apprehension surrounding USDT’s depegging.
Tether Reserves in Curve 3pool
Miles Deutscher took to Twitter to share rising concerns on USDT. He highlighted-
Whales have been dumping $USDT, resulting in USDT now comprising 50%+ of the Curve 3pool.
The recent dumping of USDT by whales has significantly impacted the composition of the Curve 3pool. USDT now comprises 73.17% of the liquidity pool, with over 13% each. This is the highest it has been since November 2022 (FTX collapse).
He is unclear if this sudden surge in USDT inflows is merely the result of FUD, or if there is insider knowledge driving these actions. A bulk of the scrutiny towards USDT comes from its de-peg in the wake of the Terra crash.
CoinGape reported on May 12, 2022, that the token is down 4.8% to 0.9508- its lowest level since the 2017 crypto crash. Again on June 6, 2022, Tether (USDT) experienced a significant depegging event, trading at $0.18 per USD Coin (USDC) on ValleySwap.
Whale Shorts USDT
Lookonchain, a blockchain explorer, has shed further light on the situation by identifying specific addresses associated with the pump and dump activities surrounding USDT.
Also Read: How Stable Is Tether?..
One notable player in the USDT depegging scenario is CZSamSun, who reportedly shorted USDT on Aave V2 after its depegging. CZSamSun borrowed a substantial amount of USDT, specifically 31,544,278 USDT, from Aave V2 and exchanged it for 31,475,408 USDC at a rate of $0.9978. Furthermore, CZSamSun deposited 10 million USDC back onto Aave V2, suggesting a calculated strategy to exploit the depegging situation.
The recent dumping of USDT by whales and its subsequent impact on the Curve 3pool have once again raised concerns about Tether’s stability and trustworthiness. Tether is currently trading at $0.9973, experiencing a slight 0.25% decrease in value over the past 24 hours. With a market capitalization of approximately 83 billion, USDT continues to be one of the largest and most widely used stablecoins in the cryptocurrency market.
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