Breaking: 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.
- ‘Great Progress’: Cardano Founder Shares Update After CLARITY Act Roundtable
- Jerome Powell Signals No Rush to Cut Rates, Bitcoin Falls
- FOMC Meeting: Fed Makes First Rate Cut of the Year, Lowers Rates by 25 Bps
- “Beyond a Centralized Exchange” Bitget CEO Unpacks Universal Exchange Vision on 7-Year Anniversary
- Breaking: CME Group to Launch Solana and XRP Futures Options as Institutional Demand Grows
- Toshi Coin Gains 57% in One Day: What’s Driving the Sudden Upside?
- Shiba Inu Price Set to Soar as Exchange Reserves Dive Amid SHIB ETF Chatter
- Pepe Coin Price Prediction as Whale Moves $25M From Robinhood- Is a Breakout to $0.00002 Next?
- XRP Price Prediction as Market Longs Hit 78% amid VivoPower Treasury Expansion Launch — Is $4 Next?
- SHIB Price Forecast: Taker Buys Lead as Developers Counter Shibarium Exploit
- Solana Price Set for a 25% Jump as Open Interest Nears a $20 Billion Milestone
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Premium Partners
