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Over the past seven days, investors have reduced the total volume of the USDT stablecoin in circulation from $ 83 billion as of May 12 to $ 74 billion on May 18.
According to CoinGecko, tether’s stablecoin continues to rank third in terms of market capitalization in the cryptocurrency market.
A prerequisite for the reduction in turnover by $ 9 billion was the recent collapse of the UST algorithmic stablecoin, as well as the subsequent delisting of it and LUNA from trading platforms. Amid the hype around the UST, the USDT stablecoin temporarily lost its peg to the US dollar on some exchanges, falling to $ 0.95. However, it has now recovered to $1.
Ki Young Ju, CEO of analytical firm CryptoQuant, asked Tether CTO Paolo Ardoino on Twitter whether the USDTs currently in circulation were fully secured. Ki Young Joo noted that not only regulators want to get an answer to the question. Companies and ordinary crypto investors also want to know this, as they are concerned about the decline in the value of the US dollar and are interested in investing in bitcoin ETFs.
“Tether provided 7 billion in 48 hours without blinking an eye. How many institutions can do the same? We will continue to work if the market wants it. We have liquidity to handle large amounts of payouts in a 1:1 ratio. Yes, USDT is fully secured,” Ardoino wrote in response.
The head of CryptoQuant asked when Tether is going to conduct another audit of USDT. Ardoino replied that the company is already working on it. He also hopes that regulators will create conditions for the development of cryptocurrencies, in which audit firms will treat them more friendly.
Detailed information on securing the USDT stablecoin first appeared in May 2021. At that time, about 76% of USDTs were backed by traditional currencies and liabilities in them. According to a Tether report presented in February 2022, the company reduced its securities reserves by more than $ 6 billion in four months.
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