USDT is plummeting! Is Binance to blame?

Tether (USDT) is the largest stablecoin currently on the markets. Present in the crypto ecosystem since 2014, its position is undeniable. However, USDT’s lowest parity since the fall of FTX is being recorded, and this could be the work of Changpeng Zhao, CEO of Binance.

USDT parity at an all-time low! What’s going on?

USDT has dominated the stablecoin market for many years. While the token is generally used as a benchmark, it has been in a poor position over the past few days. According to a tweet, USDT parity is the weakest since the FTX collapse.

So what’s going on? According to Paolo from Tether, it’s counterparty attacks against the token. Indeed, more and more addresses are withdrawing their holdings from Kraken and Huobi and selling them on a massive scale. Surprisingly, these accounts are funded by Binance.

The crypto market has rarely had sustained sales that drop so low without a crisis. So, even if this is Binance’s doing, it must be acknowledged that this is the least confidence ever seen in USDT parity from market makers.

A war between CZ and Paolo Ardoino?

Paolo Ardoino, Tether’s head of technology, no longer seems to be in the good graces of Binance CEO CZ. With USDT parity at its weakest since last year, Changpeng Zhao is adding fuel to the fire. The latter has declared that Tether is a black box, and even predicts that investors could set their sights on stablecoins not pegged to the US dollar.

Huobi is collapsing fast, but CZ is sticking to its guns. Some see this as a way for the founder of the world’s largest crypto exchange to promote his upcoming stablecoin. Even if this is currently on stand-by due to SEC sanctions.

However, even if this is Binance’s strategy to enhance the value of stablecoins not backed by the US dollar, the subject intrigues investors. The low USDT parity suggests that something is amiss. One theory is that high US money accounts are a major factor in this problem. It could be that, with a yield of over 5%, they don’t see the need to recover a few basis points on redemptions. A complicated story!