Tether (USDT) is the leading stablecoin by Market cap and exchange volume. Ethereum, BNB Chain, Cardano, Solana, Tron and more are built into the Blockchain. Investors are massively exiting hundreds of millions of USDT. What does this mean for the popular Altcoin?
Investors are exiting the popular altcoin project!
Renowned crypto news reporter Colin Wu noted on August 8 that over $335 million had been withdrawn in the last 24 hours. Wu stated that during this period, investors withdrew from USDT positions. Paolo Ardoino, CTO of Tether Holdings Inc. and Bitfinex, previously reported over $325 million in USDT redemptions. “When you use USDT, it means you want to buy back fiat dollars,” Ardoino explained.
According to CoinMarketCap’s Aug. 8 data, the above numbers can be seen with Tether’s aggressive decline in the stablecoin market cap. The altcoin project suffered a loss of about $0.33 billion in market value in a single move. In this move, its market capitalization fell from $83.81 billion to $83.48 billion.
Tether USD (USDT) market cap. Source: CoinMarketCap
What do the exits mean for the altcoin project?
Unlike other cryptocurrencies, dollar stablecoins are pegged to the US dollar at a 1:1 ratio. Accordingly, it designs developers to have a fixed price in USD. Therefore, market cap indices often reflect the amount of coins in circulation. When the market capitalization increases, this usually means that more USDT is in circulation. It also indicates that traders have exchanged their fiat dollars for USDT. The reverse is also true for altcoins. Because market value drops often mean that investors are burning their USDT in exchange for USD in the traditional banking system.
The current incident takes place in the midst of a major competitor launching a new stablecoin on the market. PayPal announced that PayPal USD (PYUSD), a stablecoin issued on the Ethereum (ETH) Blockchain by crypto firm Paxos Trust Company and pegged to the ERC-20 US dollar, which is fully backed by USD deposits, short-term Treasury bonds and similar cash equivalents, will be launched on August 7.
CTO Paolo Ardoino made important statements
In the same post, Tether Holdings CTO Paolo Ardoino also said there was some “fear, uncertainty, doubt” (FUD) regarding users’ ability to use their money within Tether Holdings Inc. The CTO also noted that Tether’s onboarding process is taking place as usual. However, it did note that it requires investors to meet a few conditions, such as the Know Your Customer (KYC) identification process and “basic information such as the source of funds.” In this context, Ardoino made the following statement about the altcoin project:
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Investors are exiting the popular altcoin project!
Renowned crypto news reporter Colin Wu noted on August 8 that over $335 million had been withdrawn in the last 24 hours. Wu stated that during this period, investors withdrew from USDT positions. Paolo Ardoino, CTO of Tether Holdings Inc. and Bitfinex, previously reported over $325 million in USDT redemptions. “When you use USDT, it means you want to buy back fiat dollars,” Ardoino explained.
According to CoinMarketCap’s Aug. 8 data, the above numbers can be seen with Tether’s aggressive decline in the stablecoin market cap. The altcoin project suffered a loss of about $0.33 billion in market value in a single move. In this move, its market capitalization fell from $83.81 billion to $83.48 billion.
Tether USD (USDT) market cap. Source: CoinMarketCap
What do the exits mean for the altcoin project?
Unlike other cryptocurrencies, dollar stablecoins are pegged to the US dollar at a 1:1 ratio. Accordingly, it designs developers to have a fixed price in USD. Therefore, market cap indices often reflect the amount of coins in circulation. When the market capitalization increases, this usually means that more USDT is in circulation. It also indicates that traders have exchanged their fiat dollars for USDT. The reverse is also true for altcoins. Because market value drops often mean that investors are burning their USDT in exchange for USD in the traditional banking system.
The current incident takes place in the midst of a major competitor launching a new stablecoin on the market. PayPal announced that PayPal USD (PYUSD), a stablecoin issued on the Ethereum (ETH) Blockchain by crypto firm Paxos Trust Company and pegged to the ERC-20 US dollar, which is fully backed by USD deposits, short-term Treasury bonds and similar cash equivalents, will be launched on August 7.
CTO Paolo Ardoino made important statements
In the same post, Tether Holdings CTO Paolo Ardoino also said there was some “fear, uncertainty, doubt” (FUD) regarding users’ ability to use their money within Tether Holdings Inc. The CTO also noted that Tether’s onboarding process is taking place as usual. However, it did note that it requires investors to meet a few conditions, such as the Know Your Customer (KYC) identification process and “basic information such as the source of funds.” In this context, Ardoino made the following statement about the altcoin project:
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