$300 Million USDT Withdrawn From The Market Within A Week
At the moment, the KuCoin and Bitifiex exchanges have paused deposits in crypto and reports indicate that it might be due to lack of an efficient trading partner.
Controversy Around USDT Continues
The issuer of USDT, Tether LLC has withdrawn about $300 million of the coin from the market. Data indicates that the stablecoin was removed from the market last week. The removal came just days before the crypto lost its dollar peg.
According to information from Omni, the giant exchange platform Bitfinex returned 300 million USDT back to Tether reserves. The stablecoin was returned through two different payments. Omni is a blockchain data provision platform.
The initial transaction was conducted on Tuesday, at which time 100 million USDT was involved. Another transaction was conducted on Sunday at which tie the remaining $200M USDT was returned. At the beginning of October, Bitfinex had sent 10 million USDT back to Tether reserves. The development comes at a time Tether hasn't released any tokens for over two weeks.
A report from Tether reserve indicates that the firm has been requested to release USDT worth $486M but it's yet to comply. A look at the Omni wallet, shows 486M USDT lying there. Current data also reveals that USDT’s market cap stands at $2.5 billion in tokens. This is a drop from the previous all-time high of about $2.9 billion. With reports about the removal of the US dollar peg, USDT’s market cap has dropped to $2.4 billion.
Reports indicate that USDT’s dollar peg escalated on Sunday evening, leading to a drop in the token value to $0.92 which varied across different trading platforms. By press time the currency had stabilized at $0.96.
Over the years, tether has attracted controversy. The uncertainty surrounding the crypto heightened when reports emerged that exchange platform Bitfinex alongside Tether were sweating over finding an efficient banking partner. Accirding to a statement released by Bitfinex, fiat deposits have been stopped temporarily for the next few days.
In regards to these developments, the data shows that many users have decided to employ a variety of stable coins from firms like Gemini. At the moment, stable coins from a number of big names have started exchanging at a slight premium to USDT. This is an indication that many clients are not sure about the dollar’s support.