All major cryptocurrencies have experienced declines over the past few days. Many cryptocurrency investors have decided to increase the share of stablecoins in their portfolios. As a result, the crisis in FTX and Alameda increased the interest in these altcoin projects. Reinforced all the flaws of this part of Web3. Ethereum founder Vitalik Buterin shared his expectation regarding the stablecoin Tether (USDT).
Vitalik Buterin shared his ideas
Tether (USDT), the largest stablecoin by market capitalization, has become a “safe haven”. Users began to aggressively buy USDT on centralized and decentralized exchanges. Ethereum (ETH) founder Vitalik Buterin said that Tether (USDT) has been standing strong in the recent crisis. He admitted that the transparency of USDT leaves much to be desired. But the cryptocurrency and its issuer have “far exceeded” the expectations of the deep decentralization advocate. As we have reported as Kriptokoin.com; On November 10, 2022, the cryptocurrency market suffered serious losses. Vitalik Buterin said on his Twitter account:
I have to admit, I’ve been very critical of Tether in the past. Also, their transparency is still not what an asset-backed cryptocurrency should be. But especially in this bear market considering what has happened to many other major cryptos, they exceeded my expectations!
I have to admit, I've been very critical of @Tether_to in the past, and their transparency is still not nearly what I think an asset-backed coin should have, but especially given what's happened to so many other big-money hotshots this bear, they've exceeded my expectations!
— vitalik.eth (@VitalikButerin) November 9, 2022
Tether Limited has increased its share in cash and equivalents to a historic high of 82 percent, according to information cited by Paolo Ardoino, the CTO of Tether and Bitfinex. Mikko Ohtamaa, CEO and founder of Trading Strategy and former CTO of LocalBitcoins, said. Ohtamaa admitted that putting Tether on FTX would incur huge fees.
New #tether attestation is out!! (As of 30 September 2022)
As promised the CP reduced to 50m (0 as of now).
Increased US T-BILL.
60m more in exceeding reserves for a total of 250m.
Increased percentage of cash and cash equivalents to 82%.
Proud of the work of the team! 🔥 https://t.co/4t8UDwonHT— Paolo Ardoino 🍐 (@paoloardoino) November 10, 2022
Also, Ohtamaa emphasized that there is no market in 2022 where whales can expose USDT to crash its issuer. Mikko Ohtamaa says that a well-balanced portfolio of reserves makes the whole system sustainable. Tether (USDT) made a statement regarding the transparency of its resources and operations. Ohtamaa highlights that this increases over time. According to him, it is getting harder and harder to lie and hide things.
1/ Based the latest Tether attestation, it holds $40B in the US Treasury bills.
It would take $40B redemptions before Tether faces a liquidity crunch. pic.twitter.com/D38enMBffn
— Mikko Ohtamaa 🐮 (@moo9000) November 11, 2022
However, USDT is still vulnerable when it comes to hypothetical regulatory attacks or potential deals between Wall Street investment banks. Bitcoiner and crypto educator Brad Mills agreed with Ethereum:
Tether (USDT) looks so sustainable. It is almost impossible to leave the USD price for a long time. Tether (USDT) can only be targeted by coordinated attacks and de-peg for a short time.
🚨USDT only dropped last night because someone attacked the peg to profit.
There’s no real risk of USDT having a sustained depeg because of these attacks.
During extreme events (Celsius, Luna, FTX) mercenaries manipulate the fungibility of USDT through DeFi pools like curve. pic.twitter.com/j3rGoE2MLf
— Brad Mills (🔑,🧀) (@bradmillscan) November 10, 2022
On November 10, 2022, an Alameda-linked wallet address allegedly began “shorting” Tether through the Curve and Aave pools. However, USDT soon rebounded to the “normal” $1 level. In contrast, algorithmic stablecoins FRAX, MIM, and especially Tron’s USDD have faced more notable damage. It also witnessed the low-capital Euro-pegged stablecoin Eurocoin (EUROC).
