{"id":14408,"date":"2022-11-10T12:38:32","date_gmt":"2022-11-10T12:38:32","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/what-risk-does-the-usdt-stablecoin-face-in-ftx-aftermath\/"},"modified":"2022-11-10T12:38:32","modified_gmt":"2022-11-10T12:38:32","slug":"what-risk-does-the-usdt-stablecoin-face-in-ftx-aftermath","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/what-risk-does-the-usdt-stablecoin-face-in-ftx-aftermath\/","title":{"rendered":"What Risk Does the USDT Stablecoin Face In FTX Aftermath?"},"content":{"rendered":"

(Originally posted on : Crypto News – iGaming.org )<\/b>
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The cryptocurrency space has been scrutinizing big stablecoin firms about their dealings with FTX and FTT. Perhaps because of concern that a rerun of the Terra event would occur. Tether\u2019s CTO, Paolo Ardoino, was recently queried about the cryptocurrency\u2019s possible vulnerability from FTT as well.<\/p>\n

So, how significant is USDT\u2019s exposure to this collapsing asset and company?<\/p>\n

Is the USDT stablecoin at risk?<\/h2>\n

In a tweet to Tether\u2019s CTO and Circle\u2019s CEO, WU Blockhain voiced concerns about the stablecoin\u2019s susceptibility to FTX and FTT. According to the tweet, Alameda, FTX\u2019s trading business, is the largest issuer of USDT.<\/p>\n

If USDT, the largest stablecoin by market size, were to crash abruptly and unexpectedly due to excessive exposure, the consequences may be terrible. Perhaps even greater than those of the Terra disaster.<\/p>\n

Following community worries, Tether\u2019s Chief Technology Officer Paolo Ardoino stated that the stablecoin issuer is not affected by FTX or Alameda.<\/p>\n

The Tether executive stated that Alameda had already redeemed a considerable amount of USDT. Regardless, no credit exposure had reached maturity.<\/p>\n

Circle CEO, Jeremy Allaire\u00a0also dismissed any rumors of their USDC being under threat of the FTX downfall and said<\/a>:<\/p>\n

On Thursday, Tether (USDT) traded below $0.993 early Thursday, down 0.6% from its targeted $1 peg as traders weighed the dangers posed by crypto exchange FTX and its affiliated trading arm Alameda Research.<\/p>\n

Under \u201cnormal\u201d circumstances, the USDT stablecoin is traded between $0.999 and $1.01. The stablecoin is presently trading in the $0.992-$0.993 area on Kraken, Binance, Coinbase, and OKX, according to data from the four exchanges. Tether representatives have again confirmed that the stablecoin is 100% backed<\/a> and that speculations are unfounded.<\/p>\n

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