Fresh concerns are emerging around Tether (USDT). Large-scale holders, often referred to as ‘whales’, have been reportedly shedding their USDT holdings. This has led to a sudden and significant increase in USDT’s presence in the Curve 3pool, where it now accounts for over half of the pool’s composition.
This abrupt influx is far from typical, sparking speculation across the crypto community. The key question is whether this is just another wave of fear, uncertainty, and doubt (FUD), or if there’s undisclosed information that’s driving these actions. We will continue to monitor the situation and provide updates as they unfold.
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Show more +The concentration of USDT in the Curve 3pool has reached its highest level since the FTX collapse in November 2022. This observation underscores the unusual nature of the current situation and raises questions about the stability of the stablecoin.
Over the past 48 hours, there has been a marked increase in USDT inflows into the 3pool. This sudden uptick further fuels speculation about the stability of the stablecoin and the motivations behind these large transfers.
For those concerned about a potential de-pegging of USDT, a strategy has been proposed to short USDT on-chain. This strategy could serve as a hedge against potential losses. It’s worth noting that shorting can also be done on perpetual swap exchanges like Bybit, but traders should be aware of the associated funding rates.
Adding to the intrigue, a prominent crypto trader opened a substantial short position on USDT after it de-pegged, likely contributing to the initial panic. The trader borrowed 31.5 million USDT, using 17,000 ETH and 14,000 stETH as collateral. The borrowed USDT was then exchanged for USDC. This move further intensified the market’s focus on USDT’s stability.
In response to the growing concerns, Tether’s CTO expressed confidence in Tether’s ability to withstand any challenges. He stated that Tether is prepared to redeem any amount, signaling the company’s readiness to address the situation.
