Fake News On Binance Delisting USDT Rattles The Market
Such news is a clear indicator that cryptocurrencies can volatile. The fake reports might propel the long-awaited bull run.
Binance Denies Terminating USDT
On Monday, cryptocurrency lovers woke up to the news that prominent exchange firm Binance was set to remove tether from its platform. However, the news that was circulating on social platforms ended up to be untrue. The news sent shockwaves in the market, with many stating that it was another case of volatility among cryptocurrencies. The consequences of the fake news had already been felt despite the exchange not releasing an official statement regarding the matter.
The news hit the market, just after KuCoin revealed that it was temporarily shutting down USDT deposits as well as withdrawals on its platform. However, the exchange did not reveal the decision behind the development. In a statement to users, the exchange said that it was working to fix a number of issues in relation to USDT. The team promised to issue further updates once everything had been fixed.
Following the news by KuCoin, rumours started circulating that Binance was also following suit. The reports claimed that there was sufficient evidence that USDT was a scam. The news was mainly spread through social media platforms.
Following the reports, Binance boss Changpeng Zhao came out to clarify that there was no such development at the exchange. He retweeted a tweet that indicated that exchange had resolved to delist USDT. Zhao said that his firm can never paint USDT as a scam since it was politically correct.
The market swiftly reacted to the news with USDT holders opting for bitcoin. Many were afraid of making huge losses. Bitcoin was the only option since it appears to be the only safe cryptocurrency. With a spike in trading, bitcoin’s value went up on Binance to trade at highs of $7,500. By press time, crypto was valued at $6,800.
The fake news might have both direct and indirect effects on the market. As an indirect repercussion, the news might be responsible for evoking the awaited bull run in the sector and the altcoin phase. Many are watching the market to see if the news will have this effect.