USDT/USD POSSIBLE SCENARIOI think we are not far away from this scenario. To be honest everything is going south so I'm expecting that we can see in upcoming weeks crash of USDT.
USDTUSD trade ideas
7 billion Tether (USDT) redeemed as stablecoin supply decreasesFollowing the cryptocurrency market turmoil, the total supply of stablecoins has fallen quite significantly. This reportedly marks Q2 of 2022 as the first time in crypto history where the overall supply of stablecoins has decreased.
Over the past month, the total supply of all stablecoins combined declined by more than 10 billion (equally +$10 billion), even when excluding the failed TerraUSD. According to Coinmetrics, the tokens were directly redeemed by the holders through the treasuries of major issuers.
The largest stablecoin issuer Tether Inc. recorded the most redemption of all centralized stablecoins, as USDT supply dropped by approximately seven billion on Ethereum, Omni Layer Protocol, and Tron Network. The decentralized stablecoin DAI dropped by over 40%, mostly due to liquidations of debt positions.
Tether - A word of caution over Tether stablecoin safetyIn our previous posts, we warned about de-pegging of the Tether stablecoin from the U.S. dollar. The precedent was set when Luna stablecoin fell 99%, spilling to other tokens and temporarily breaking the peg between the USDT and USD. With the recent crash in the cryptocurrency market, we remain very pessimistic about its outlook.
Illustration 1.01
The picture above shows the precedent that took place on 12th May 2022. The Tether token can be seen losing almost 6% of its value against the U.S. dollar.
Already back in July 2021, Jannet Yellen, the U.S. treasury secretary, summoned Jerome Powell and the head of the Securities and Exchange Commission to discuss Tether and the danger it poses. Then in October 2021, the Commodity Futures Trading Commission (CFTC) filed and settled legal cases against iFinex Inc. , BFXNA Inc. , and BFXWW Inc.
The actual text (only excerpts) from the CFTC website
1st excerpt
“The Tether order finds that since its launch in 2014, Tether has represented that the tether token is a stablecoin with its value pegged to fiat currency and 100% backed by corresponding fiat assets, including U.S. dollars and euros. However, the Tether order finds that from at least June 1, 2016 to February 25, 2019, Tether misrepresented to customers and the market that Tether maintained sufficient U.S. dollar reserves to back every USDT in circulation with the “equivalent amount of corresponding fiat currency” held by Tether and “safely deposited” in Tether’s bank accounts. “
2nd excerpt
In fact Tether reserves were not “fully-backed” the majority of the time. The order further finds that Tether failed to disclose that it included unsecured receivables and non-fiat assets in its reserves, and that Tether falsely represented that it would undergo routine, professional audits to demonstrate that it maintained “100% reserves at all times” even though Tether reserves were not audited.
3rd excerpt
“Tether held sufficient fiat reserves in its accounts to back USDT tether tokens in circulation for only 27.6% of the days in a 26-month sample time period from 2016 through 2018. “
We raise a word of caution as to the question of stablecoin safety - in this particular case of Tether .
Illustration 1.02
The picture shows another anomaly in the price of Tether, but this one started to occur yesterday.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
USDT de-pegging ?!?!?!This volatile market is very dangerous if you are holding USDT too.
When UST, Luna`s stablecoin depegged from the USD value, USDT went down to $0.94 and then back up.
This time, with the sharp sell-off of all assets, the threat of depegging is bigger and more dangerous for Tether.
I would rather avoid USDT and BUSD for now.
Tether is correlating the crypto marketThe StableCoin crash is irreversible. In this scenario, nobody knows where will be the bottom of the #CryptoMarket. There are risks for #Bitcoin to see the 4k level ;)
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USDT crash to $0.16 price levels Guys ... Did you forget about our #USDT trade? Watch this sh*it. It will go to #ZERO
Something is going on at Tether Tether has been off the peg for so long that they now have a blog post redefining what an asset peg means so that people stop asking them why they are off the peg.
Target is 0 on this
Thanks and take care
Is USDT up to something? -Not TA-Just an anomaly or is something going on here?
If you think tether will be used/abused as a scapegoat for a market crash and more stringent regulations by the same people who have been using it to control and own the market (and make a tidy profit at the same time), gimme a like.
Thanks, all.
Be careul out there.
Will usdt crash like ust? ALERT ⚠️Usdt drop 5 cents yesterday. They can drop up to 40 cent. If you have Usdt to convert it to Bust or USDC otherwise you'll lose your money
Please follow me for more update
USTUSD Total Peg Failure vs. USDTUSDUST has lost its peg to USD, and I do not forsee any attempts to repeg the stablecoin as being successful. This has significant implications for USDTUST or "Tether":
1.) The psychological "suspension of disbelief" has been broken. Reality has set in that stable coins can, and have, lost their peg. Previously there was no major stablecoin to have completely broken down in such a way that affected the whole market so significantly
2.) Tether has questionable collateral backing, and these backings will see significantly increased scrutiny in the coming days.
3.) If Luna can fall from such heights with such velocity, an unprecedented and tangible seed of fear is planted for all other crypto assets.
Time will tell, but there may not be much of it left.
What's going on in Tether?If Tether Group (owned by Bitfinex) just kept one USD in the bank for each Tether they minted I would not be writing this idea. It was the whole idea of the thing in the first place.
They have been investigated because it's not entirely clear that they do, but no one has ever exposed them completely, so one USDT is still one USD. Till today.
I have always been happy to say I will never have any USDT in my portfolio. This is because from what they have announced, they do not have one USD backing each USDT. They have a portfolio of "low-risk" assets instead, which they say is worth more than one USD. We don't know what they own.
In my opinion, this means they are now like any other $2B hedge fund, with YOU as the investor. There is a difference though.
If their portfolio out-performs the USD, as a lot of hedge funds do (it's kind of basic, actually being able to make money from investing in stuff) they can keep the proceeds. After all, they only need enough USD to back the USDT in circulation, so if they are making money with their hedge fund trading, then they keep it. (You don't get any of it).
If their investments/trades go to hell in a handbasket then USDT goes down along with the NAV of their portfolio.
Today's price action makes me feel that this is not an attempt to smash USDT like LUNA. No, it is subtly different.
What did they invest in? We don't know. Was there any Crypto in their portfolio. We don't know but if so they have lost a lot of money... What about stocks? They look bad too.
When markets get this shaky, some hedge funds fail. Is this one going to fail?
USDT is the next target, worth to short ? USDT is considered the biggest stable coin in the crypto market, based on market cap, while some argue they are not transparent at all.
Which one is safer ? USDC is the better one with strong investors / issuers backed. At least, we have some ideas how much USD in their treasury and what kind of assets they are investing
USDT - shorting USDT / USD gives you positive funding with only 4-5 % downside risk, worth to try ! Prefer relatively smaller trade ticket size
STABLECOINS ARE DYING! What's next???Yesterday we saw a huge plummet of ust (terra) stablecoin.
Because of that Luna dropped 99% and currently is traded under 0.15c
If you check other stablecoins, you can see that there is a lot of volatility lately and slowly but surely they start tanking down.
What does it mean to us?
1. Stablecoins aren't stable anymore
2. It's better to wait the storm out in fiat
3. Usually, such instability happens before huge BTC drop.
On the interesting note we can see that BUSD is holding stronger than others, and binance is really committed to keep it that way. If it holds, while others will fall, it very easily will become new #1 stablecoin.
What do you think of this idea? What is your opinion? Share it in the comments📄🖌
If you like the idea, please give it a like. This is the best "Thank you!" for the author 😊
P.S. Always do your own analysis before a trade. Put a stop loss. Fix profit in parts. Withdraw profits in fiat and reward yourself and your loved ones
this is uncharted territoryremove yourself from stable...usdt has been propping btc up for years brace yourselves. god speed, accumulate slowly, there will be a bottom eventually.
SHORT ALL STABLE COINS - SYSTEMIC BANK RUN IS ON FOLKS 100X R/RShort all the stable coins close to 1 as you can with MAX leverage.
The trade is hugle assymetric. Max loss is 1% but max upside is 100% thats 100/1. 10-20x leverage should be used too.
NO.1 trade rn folks
Shorting Tether?Thoughts on shorting tether with max leverage possible? It's a long shot but besides some fees there in my opinion is only upside if worst case scenario for tether happens. Which exchange would be best and thoughts about the idea are more than welcome.
USDt update todayThe exchange said that the new margin trading service aims to improve its stablecoin offerings to enable it to remain consistent with user demand and market evolution. The new service would, therefore, enable Bitfinex investors to conduct leveraged trades for the trading pairs. This means that customers will be able to borrow money from the platform to exchange USDt and EURt, GBP and USDt, GBP and EURt, and JPY and USDt.
Bitfinex mentioned that the addition of the new trading pairs is in line with its stated commitment to providing a ‘coin agnostic platform’.
When TetherUSD Spikes, The Market DivesJust something I've been noticing lately. Whenever the price of Tether compared to USD has a spike above $1.00075, the entire market will dive a minute later. The symmetrical dive of every token is obviously in response to one temporarily neededing less USDT to buy every token.
Is this an opportunity for those with custom bots to craft an algorithm to close all the trades when this is detected. Something, as it is indeed a repeating trend.
Is Tether at fault for not balancing their coin fast enough to stop this. It obviously triggers bots to sell, which causes more bots to sell, which then causes humans to sell... And then whales to buy.
Let me know what you guys think? See for yourselves ; the finer the definition on the chart, the clearer it is to see. Happens at 12:37am.
Cheers!
Best time Frame for Beginners Guys today i not give you any type of prediction but i share something with you if you start trading and new in market so do trading 1 day time frame first earn continuous in 1 day time frame then start tradind 5 min and 15 min chart frame start with swing trading ya positional trading this is best for begginers why beasue it is easy and executable and market all about timeing and discipline and focus on 1 strategy and continuous work this strategy for 6 month and not use toomany tools and indicators always follow KISS formula ( kept it simple stupied) thank you god bless you and make some money for your dreams and your family
Long USDTUSD to $1.511Long spot Tether without SL to exit to USD, EUR. I wont hold a short trade on Tether or ever again allow USDT in my portfolio. Watch out!
tether into evergrande defaultbeen some FUD for a while about tether backing having CP in evergrande
we're going to find out very soon if that's a thing.
will be watching this chart, along with USDT market cap to see if there are any systemic risks due to this.
Is Tether really stablecoin?Business media has raised its concerns regarding the stability of Tether USD. Personally, for me, it has been challenging to make an opinion is a Tether really going to continue its stability. What do you think, will Tether keep its status as the number one stable coin in the crypto market?
Bloomberg article: www.bloomberg.com
