It was a dramatic day in the cryptocurrency market, with Tether’s USDT deviating slightly from its peg to the US Dollar. Interestingly, coinciding with a major news release by the New York Attorney General’s office to CoinDesk.
However, Tether’s chief technology officer (CTO), Paolo Ardoino, reacted strongly to these developments. He said the events were a planned attack on Tether. Yet the company was well prepared and emerged stronger than ever.
Tether loses his ankle
Paolo Ardoino was unequivocal in his assessment events of the day. “Today is a good day at Tether,” he began, noting the strength and willingness of the stablecoin to protect its community from what he called an attack.
Ardoino suggested that the USDT depegging was an orchestrated effort to undermine confidence in the stablecoin. Still, he maintained that Tether had nothing to hide and was stronger than ever.
The so-called “attack” began when USDT deviated from its usual peg to the US dollar. The incident was caused by an imbalance in Curve’s 3pool.
USDT’s price fell to around $0.997 as its weight in Curve’s 3pool rose to 70% from the usual 33%.
This discrepancy was mainly caused by a whale address called CZSamSun. He borrowed 31.5 million USDT and swapped it for USDC, causing USDT’s US dollar peg to fluctuate slightly.
While such price swings are not unusual in the volatile crypto market, the timing of the event raised some eyebrows. This undocking alert occurred the same day the New York Attorney General’s office provided CoinDesk with documents relating to Tether’s quarterly reports, following Tether’s decision to drop its opposition to the disclosure.
Despite the challenges, Tether has shown resilience and remains committed to transparency. Ardoino highlighted the company’s continued commitment to transparency and unproductive litigation that distracts from the real issues facing the industry.
“In this period, more than ever, after so many failures, uncertainties, doubts, our industry needs stability and reassurance. Tether has nothing to hide. Never had,” Ardoino said.
Tether’s CTO also reiterated the company’s commitment to protecting customer data and its focus on maintaining the accuracy of its financial numbers.
CoinDesk spilled the beans
Paolo Ardoino also highlighted CoinDesk’s role in the day’s events. He suggested that their coverage often misrepresents Tether’s market position in favor of its major competitors. The company called on CoinDesk to set aside its bias to avoid putting investors at risk.
Despite the potential for manipulation and spreading panic, Tether has decided to stand firm in favor of transparency.
“The published information, if properly read and interpreted, only publicly demonstrates the legitimacy of Tether’s activities and the existence of its caveats,” Tether said.
While the events surrounding the USDT depegging look suspicious, Ardoino assures that Tether is equipped to weather this storm.
However, it should be noted that the documents provided are outdated and do not accurately reflect the current status of Tether’s reserves. They don’t account for transformative changes in the Tether ecosystem. Tether has significantly reduced its commercial paper holdings and aims to reduce its secured loan portfolio to zero in the coming months.
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