USDT drops! Binance’s fault?

Tether (USDT) is the largest stablecoin currently in the markets. Present in the crypto ecosystem since 2014, its position is undeniable. However, we are recording the weakest USDT parity since the fall of FTX and this could be the work of Changpeng Zhao, the CEO of Binance.

USDT parity at its lowest! What is going on ?

USDT has dominated the stablecoin market for many years. While the token generally serves as a reference, the latter has been in a bad position over the past few days. According to a tweetthe USDT pair would be the weakest since the collapse of FTX.

But then what happens? According to Paolo from Tether, these are counterparty attacks against the token. Indeed, more and more addresses are withdrawing their holdings from Kraken and Huobi to sell them on a large scale. Surprisingly, these accounts are funded by Binance.

Rarely has the crypto market had sustained selling that goes this low without a slump. Because of this, even though this is the work of Binance, it must be recognized that this is the least confidence ever observed in the pair of USDT from market makers.

The war between CZ and Paolo Ardoino?

Paolo Ardoino, Tether’s CTO no longer seems to be in the good graces of Binance CEO CZ. As the USDT parity is the weakest since last year, Changpeng Zhao is adding fuel to the fire. The latter said that Tether is a black box and even predicted that investors might set their sights on stablecoins not pegged to the US dollar.

Huobi collapses inexorably but CZ stays on his position. For some, it would be a way for the founder of the largest crypto exchange to promote his upcoming stablecoin. Even though it is currently on stand-by due to SEC sanctions.

However, even though this is a Binance strategy to value stablecoins not backed by the US dollar, the subject intrigues investors. USDT’s low parity suggests that there is something wrong. One theory holds that the high monetary accounts in the United States are a major factor in this problem. It could be that with a return of more than 5%, they don’t see the need to recover a few basis points on redemptions. A very complicated story!