Throughout August, there was a slight but steady deviation of the USDT from the US dollar, which is a “reason for concern”. Analysts have noticed the quay.
According to their observations, other stablecoins like TUSD, BUSD, DAI, and USDC also had episodes of depeg during the year, but their deviations were less sensitive, and in general, quotes of competitors remained more stable.
Data: Kaiko.
The most serious USDT incident this year happened on August 7, when the discount reached 2% on almost every trading platform. A similar situation was observed against the background of reports about the sale of tokens for ~$500 million on Binance, Huobi, Uniswap and other exchanges.
“USDT has a peg stability issue. The established minimum redemption fee means that it is often rational for holders to sell the token on the market, rather than exchange it for fiat from the issuer. As liquidity has dwindled, the market is no longer able to absorb significant selling in USDT.” analysts explained.
Kaiko believes that continued depegs could seriously undermine confidence.
As a solution, analysts suggested that Tether consider eliminating the buyout fee and drop the minimum requirements. In their opinion, this will not have a serious impact on financial performance. The company is being held back from such a step by fears of a possible decrease in the supply of the token, they suggested.
Tether is currently charges 0.1% for converting USDT to fiat from amounts over ~$100,000. Applicants also need to pay $150 for a KYC check.
Tether previously reported $850 million in net profit in the second quarter. According to the document, 85% of the USDT collateral is cash and cash equivalents. The company invested $72.5 billion in US Treasury securities.
Recall that in May, the company’s technical director Paolo Ardoino said that the high profitability of the issuer makes it possible to consider new business areas.
Later it became known that Tether invested $1 billion in a bitcoin mining project in El Salvador.
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2023-09-01 15:33:26
#Kaiko #points #USDT #peg #issues #ForkLog
