The crypto markets have become more volatile ever since the problems with the FTX exchange and Alameda came to light. Extreme panic was felt in the market as Bitcoin and all the other major cryptocurrencies hit fresh yearly lows. However, heads turned when the leading stablecoin Tether(USDT) depegged, with a strong bearish wave dominating the market.
The rumor mill has it that SBF’s Alameda Research group is trying to short the USDT token in order to recoup a portion of their debts.
Gm
Woke up to news of SBF/Alameda shorting $USDT in a last ditch effort to initiate depeg lol
It’s all so tiresome… Keep an eye out pic.twitter.com/g1mNnU4aAt
Trending Stories
— Lite. (@LitecoinYagami) November 10, 2022
As per Hsaka, a renowned crypto analyst, tweeted that the USDT shorting is reportedly being carried out by Alameda Research, by supplying the USDC stablecoin on the AAVE platform and thereby borrowing USDT. Furthermore, the platform is swapping USDT to USDC on the curve, and the transaction has been recorded on Etherscan.
If the rumor is correct as can be seen from the Etherscan records, then the Tether reserves will need to burn more USDT than they did previously.
Somehow the entire market still seems to be in the grasps of Alameda
1. Shorting USDT (https://t.co/NBmoqaU64R)
2. Maybe $300m being moved from FTX to Nance? (https://t.co/L0MP1OoQIV)
3. SOL unlock
— Hsaka (@HsakaTrades) November 10, 2022
The stablecoin king, USDT, did get de-railed from its $1 peg by 3% today. However, it may repeg to $1 in the interim, but the broader market environment still remains extremely bearish.
Ecosystem
Research
News Network
About