Why is the USDT crashing?

[qwizzie]

Stablecoins All Want to Be $1, But They're Not Worth the Same
https://www.coindesk.com/which-stablecoin-is-the-riskiest-the-crypto-market-is-pricing-that-in/

The market is starting to differentiate between stablecoins, even though these cryptocurrencies are all designed to trade 1-to-1 with fiat.

Several U.S. dollar-pegged cryptocurrencies are now trading either significantly higher or significantly lower than the greenback, reflecting investors' perceptions of their relative risk.

Given that stablecoins are typically used as on-ramps for investors looking to purchase bitcoin or other cryptocurrencies, these premiums and discounts mean that customers may not be paying
bitcoin's "sticker price," as listed on a given exchange or data platform.

The new, more discriminating valuations began Monday morning, when the best-known stablecoin, tether (USDT), broke its peg, falling to a low of roughly $0.87. And while the price stabilized closer
to $1 over the next day or so, its market capitalization dropped significantly, indicating that tethers are being taken out of circulation.

Seems like most traders are dumping Tether for Gemini Dollars.
I think we will see a slow decline of marketcap for Tether and a slow increase of marketcap for other stablecoins over time.

[xbossJ]

Since the  start of the crypto boom beginning last year, there is never a time Tether (USDT) has not been a headline! Allegations upon allegations on how USDT is been run and whether it has the Dollar in cash that it uses to hedge on $Bitcoin and other crypto assets that trade against it! Other people wonder how non transparent the Tether ecosystem is been operated, on several occassions people have insinuated that the recent rise in $Bitcoin's price may have been manipulated with the continous "Minting" and subsequent pumping of more Tether into the market, in all of these, no reports have proven whether Tether has at one time or the other been used to manipulate the market! Good thing is that we still have stable coins we can hedge on! All exchanges need to do is to add more stable coins to the pack.

[Diamond_Darrell]

Guys, look carefully at the charts and you will understand that such ups and downs of prices are pure manipulation.

[anobtc]

Only FUD has no online base, they argue that USDT is not transparently audited and can not be mortgaged in real dollars, so it can be removed from the exchange.

[victory.lil]

There are a lot of reasons, of course she’s not alone, because all this is obviously accumulating and going into one big problem, so I’ll probably just say that the time of the USDT is over. But everything can come back

[ColemanGentry]

Nothing will happen with tether. This is a very convenient and useful coin in practice, if at all it can be called a full-fledged cryptocurrency.

[rufusBTC]

USDT crashing because of only fud as always.. You know last 1 year maybe we hear same thing again and again. in my opinion tether is safe .  and as you can see tether come to 1 usd value again..
With these fuds whales easily earn 10 percentage in one day. That is incredible.

[smoolae]

USDT problem is that it can be made out of thin air and still you can use it to buy coins/tokens that cost actual money. Bitfinex can pretty much print out some Tether and continue to pump crypto prices with it.

Cannot really trust actions like this.

[kobita333]

It's because BTC domination is getting higher and people are converting their USDT into BTC, perhaps. Or it is a kind of manipulation. BTW, we have seen such a case in back in 2017 and there was a bullrun right after that. Will it be same?

[AccidentalTuber]

The tether crash might be for excess dumping by the bounty hunters. As price drops there might be more dumpings in the future.

[BusyShows]

Recently we have seen the crush of the most stable coin USDT of about 5%. Only days before the coin lost its dollar peg, Tether LLC the issuer of USDT pulled $300 million worth of coin unavailable for general use a week ago.

[Jeroiswen]

I think a panic is triggered which is the reason behind tether price drop. Tether has always been alleged of discrepancy between their actual and claimed funds and recently a fake news broke out about Binance delisting it.

[Araewien]

USDT is the most talked thing recently for the crypto arena, as 300million worth stable coin is taken out from the circulation, paved to way to panicking and effectively crashes in the market lossing its soul purpose to be stable.

[chocopapaya]

Well, it has recovered since a couple days ago, but USDT is a time bomb waiting to explode.
The scary thing is how many exchanges actually tie the USDT to real fiat.
If there are only USDT trading pairs with other cryptos, than it wouldn't be as bad.
But if there is a direct exit from USDT to real us dollars, then yes, it can crash the entire market.
Well, at this point, any of the top 10 can crash the market.

This is why, from the start I have always been against USDT and have encouraged others to stay far away.
Each USDT is supposed to represent one real USD held in bank reserve, so the price is upposed to stay stable at $1.
But that hasn't been the case.
On top of that they just keep on minting new coins like nothing else, serious red flags everywhere.

[bboyjohn]

The usdt was a very useful and functional system. However, the fact that it is being used more and more every day is a loss of value for bitcoin. It is good news for bitcoin, so that the usdt is avoided and its price dropped

[coinbirds]

Tether crashed as people lost confidence in it, and there were some panic selling due to some FUD.
The Tether market will stabilize back to around  $1 soon.
If Tether crashes it will not affect the whole market collapsing, it would cause only short time effect on the prices of other coins.

[bolbau]

another fud news spread by interest groups to damage market prices. if there is indeed a narration that the USDT will collapse, we need an objective data that is clear enough to prove the statement, don't just assume. those who do not like the crypto industry seem to be rather boring, the issue they are trying to raise never changes, that crypto (be it bitcoin, altcoin, usdt) will experience a collapse, but the reality that is happening now, crypto is able to survive and continue to grow .

[cattano]

That can be just an act created by someone or some group to makes another currency, in this case cryptocurrency to rise.
I believe that is a normal occurrence that could happen at anytime. So this is some kind of trick to rise the price of some coins.

[lrvjvt]

In the short term, it won't collapse in 1-2 years. A temporary crash is normal because you have to know that the USDT opponent is very powerful. They may want the USDT to be unable to obtain long-term benefits.

[hengha]

Because all the coins in the cryptocurrency market are determined by purchasing power, even USDT is no exception. When the number of sellers is too large, it will collapse!