Tether Stablecoin USDT stumbled from its dollar peg and went down 3% following the collapse of the FTX crypto exchange.
Tether Global Chief Technology Officer Paolo Ardoino tweeted that Tether processed 700M redemptions in the last 24 hours and there are no issues.
On November 9th, the company published a statement saying Tether has absolutely no credit towards FTX or Alameda Research and is completely unexposed to both of them.
Teter stated “During periods of market volatility, the trading price for USD₮ that is quoted on exchanges may fluctuate. This happens because there is more demand for liquidity than exists on that exchange’s order books and has nothing to do with Tether’s ability to hold its peg nor the value or makeup of its reserves.”
Paolo Ardoino stated that Tether does not have any plans to invest or lend money to FTX or Alameda.
USDT values may diverge from the intended $1 peg sometimes, but it is clear that today’s de-peg is caused because of FTX and Alameda’s collapse which sent the whole industry into a frenzy.
The last time Tether stablecoin USDT lost its peg was when Terra LUNA collapsed which caused a string of events which the industry is yet to recover from.
Meanwhile, the collaboration between Tron and FTX caused a surge in the value of Tron-based tokens in FTX, which would adversely affect the users soon.
At the time of writing, USDT has regained its peg, as per data from both Coingecko and Coinmarketcap. But it does keep dropping down to $0.99 at times.
