- Whales are selling significant amounts on Tether (USDT), the largest stablecoin in the cryptocurrency market.
- The unusual flow of USDT has triggered concerns about the stability of the stablecoin and raised worries about its depegging.
- Recently, whales selling USDT have significantly affected the composition of the Curve 3pool.
Whales selling large amounts of USDT have raised concerns and caused the USDT stablecoin to lose its Dollar peg.
Selling Pressure Increases on Tether (USDT)
Whales are selling significant amounts on Tether (USDT), the largest stablecoin in the cryptocurrency market, causing an increase in the dominance of USDT in the Curve 3pool liquidity pool. The unusual flow of USDT has triggered concerns about the stability of the stablecoin and raised worries about its depegging.
Miles Deutscher commented on the growing concerns about USDT:
“Whales selling USDT caused it to account for over 50% of Curve 3pool.”
Recently, whales selling USDT have significantly affected the composition of the Curve 3pool. Currently, USDT accounts for 73.17% of the liquidity pool, the highest level since November 2022 (FTX crash).
Deutscher is unsure whether the sudden influx of USDT is a result of FUD (fear, uncertainty, and doubt) or actions based on insider information. Most of the criticism towards USDT comes after the Terra crash.
As reported by CoinOtag on May 12, 2022, the token’s value dropped by 4.8% to 0.9508, the lowest level since the 2017 crypto crash. On June 6, 2022, Tether (USDT) also traded at $0.18 against 1 USD Coin (USDC) on ValleySwap.
Whales Shorting USDT
To shed further light on the situation, Lookonchain, a blockchain explorer tool, identified specific addresses associated with the pumping and dumping activities around USDT.
CZSamSun, a notable player in the USDT depegging event, allegedly shorted USDT on Aave V2. CZSamSun borrowed a total of 31,544,278 USDT from Aave V2 and swapped it for 31,475,408 USDC at a rate of $0.9978. Additionally, CZSamSun deposited 10 million USDC back into Aave V2, suggesting a calculated strategy to take advantage of the depegging situation.
The selling of USDT by whales and its impact on Curve 3pool has raised concerns about the stability and reliability of Tether. Currently, USDT is trading at $0.9961, experiencing a slight decrease of 0.34% in the last 24 hours. With a market capitalization of $83 billion, USDT continues to be one of the largest and most widely used stablecoins in the cryptocurrency market.
