Even now, the cryptocurrency market continues to suffer and the major reason behind that is UST. It is the stablecoin that is provided through Terra (LUNA) ecosystem. Just recently, a depegging of the UST occurred, which made the entire crypto-verse suffer.
Things do not seem to be going well for the entire crypto-verse but the depegging of UST is an alarming situation. It ended up causing huge discrepancies between the pricing of Bitcoin and the stablecoin pegs.
USDT Faces the Impact
The recent mishap has even impacted the largest and most traded stablecoin “Tether – USDT”. According to market stats, USDT is also going through tough times as it has also felt the stress due to the recent depegging.
The on-chain data analytical firms noticed a discrepancy between USDT and USD in the past 24-hours. As per findings, the USDT/USD pair traded at $0.99 per USDT. This was an alarming situation for the stablecoin accumulators because the discrepancy was noticed among all major cryptocurrency exchanges.
Paulo Ordoino Jumped in to Save the Day
The USDT situation raised concerns not only within the crypto-verse but also the mainstream sector. If it weren’t for Paulo Ordoino, the CTO at Bitfinex and Tether, the situation could’ve been much worse.
He took to upon himself to address the depegging and provide assurance to all the USDT holders that the situation was under control. He tweeted that more than $300 million worth of USDT were redeemed by the investors. He confirmed that each USDT had been traded a price of $1.
Paulo Ordoino has confirmed that the investors do not have to worry about the USDT price being affected. It has continued trading at the $1 price and they are hoping that it’ll continue trading at the same price.
He clarified thatthere shouldn’t be any concerns related to USDT. Its price has remained stable and firm despite many high unstable market circumstances as well as many black swan happenings.
Market Fear Surrounding UST
Despite the assurances given by Ordoino, it doesn’t change the fact that Tether is a stablecoin. The recent discrepancy caused by UST has brought even the major stablecoin under the microscope.
The current crypto market situation is very critical and most of the investors are fearing the future of cryptocurrencies. They are fearing that the 2018 situation of Bitcoin may repeat itself. This is when USDT and other stablecoins may play a huge role.
If the stablecoins continue facing depegging, it can become a huge problem for the entire Bitcoin investment community. The fear also spreads out to the entire crypto mark so the investors will need to be very vigilant and make the right decisions.