Tether’s Chief Expertise Officer, Paolo Ardoino, recently addressed issues relating to the company’s flagship USDT product on Twitter. Tether is a major stablecoin company. The issue was caused by USDT trading at an extremely low price on Binance.US, which led to speculation of possible depegging in online crypto circles.
Because USDT is the biggest stablecoin in the world, reports of a potential de-peg for USDT caused some crypto merchants to scratch their heads. The Tether USD stablecoin is a key component of on- and off-ramps for several centralized cryptocurrency exchanges, with a market capitalization of over $83 billion and a 24-hour trading volume of more than $22 billion.
Crypto traders worried about a potential de-peg when they noticed USDT was being offered on Binance for $0.88 instead of the $1 that its dollar peg mandated. The cheap price, however, was only visible on Binance.The US dollar was trading at its regular value on various cryptocurrency exchanges. Even some retailers attempted to leverage the situation through arbitrage.
Tether CTO Paolo Ardoino tweeted to his followers that the price difference was likely caused by a lack of crypto market makers willing to engage with Binance’s American branch due to its continuing regulatory and legal issues. He discovered that USDT was trading 1 foundation level above the same old $1 value on the global Binance exchange.
In addition, Ardoino claimed that Tether was powerless to change the situation because it was entirely responsible for USDT’s primary market. Arbitrageurs and market making specialists were left in charge of market making activities for the stablecoin’s secondary market. Another user on the cryptocurrency Twitter platform said that Binance is also to blame for the value distinction. The US’s desire to stop a significant fiat on-ramp when it stopped accepting USD deposits.