Is USDT exposed to FTX? Read what this Tether administrator had to say. Members of the cryptocurrency community have questioned major stablecoins about their partnership with FTX and FTT. Perhaps, because of the fear and repetition of Terra’s situation can happen. Paolo Ardoino, CTO of Tether, was recently asked about the risks of cryptocurrency related to FTT.
So how bad is USDT’s exposure to these failed assets and companies? Has USDT been exposed?
The question about the weakness of the stablecoin and FTX and FTT was raised in a tweet sent to both the CTO of Tether and the CEO of Circle. According to the tweet, Alameda, the trading subsidiary of FTX, is believed to be the largest issuer of USDT.
If USDT, the largest stablecoin by trade, were to suddenly collapse due to excessive exposure, the consequences could be catastrophic. Perhaps even more than Crash Terra.
After community members raised their concerns, Tether CTO Paolo Ardoino tweeted that FTX or Alameda are not affiliated with the stablecoin provider.
The CEO of Tether said that Alameda has already mined large amounts of USDT in the past. Despite this, no credit spread has grown.
Similarly, Circle CEO Jeremy Allaire denied rumors that his company would be exposed to FTX or Alameda. According to him, although FTX and Alameda are customers of Circle, the lender did not pay the loan to FTX, received FTT as a contract or took equity in FTT.
USDT Price Volume
Although doubts and rumors have been eliminated, because now the true position of Tether will remain unknown until the dust settles. USDT is still the most popular stablecoin in the global market. In fact, the data also showed that sales increased by more than 70% in the last 24 hours.
More information can be found on the USDT daily chart. The increase in apparent USDT trading, as it generates buying pressure, is measured by the volume indicator.
In other news, the CEO of Binance announced that soon the exchange will start proof of the audit process that has been put in place to ensure the verification of its digital assets. This, due to the problem of liquidity and availability of FTX. He went on to promise to create a proof system using Merkle Trees – A data system designed to cover blockchain data efficiently and effectively to ensure “full understanding”.
Many other changes have also indicated their desire to follow suit. This is important as it will make people understand the financial situation of different markets.
