{"id":4114,"date":"2022-05-13T20:40:32","date_gmt":"2022-05-13T20:40:32","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=4114"},"modified":"2022-05-13T20:40:35","modified_gmt":"2022-05-13T20:40:35","slug":"bitfinex-cto-plays-down-reports-that-tether-was-in-trouble","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=4114","title":{"rendered":"Bitfinex CTO plays down reports that Tether was in trouble"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p>During a Twitter Spaces conversation on May 12, Bitfinex CTO Paolo Ardoino dismissed reports that Tether was in trouble. In the early hours of May 12, USDT had shown signs of de-pegging, as its price dipped as low as $0.9410.<\/p>\n<p>Source: USDT\/USD on TradingView.com<\/p>\n<p>With markets still reeling from Terra UST losing its $1 peg, a similar situation for Tether could have set off a crypto ice age.<\/p>\n<p>Tether is the industry\u2019s biggest stablecoin by market cap and most paired, meaning the majority of liquidity in crypto markets flows through USDT.<\/p>\n<p>Critics say events of this week highlight the fragility of private stablecoins. Given the loss of billions via the UST fiasco, authorities say stricter rules on stablecoins will be coming.<\/p>\n<h2>Tether recovers<\/h2>\n<p>Ardoino sought to reassure investors, despite the drama, by saying\u00a0 \u2018the peg was not broken.\u2019 He referred to the firm\u2019s ability to redeem tokens instead of its price on exchanges.<\/p>\n<p>USDT holders can redeem their tokens, on the Tether website, for $1 per token. Even though exchange prices were sinking, token holders were still able to cash out at face value, minus verification and withdrawal fees,<\/p>\n<p>Ardoino said, on May 12, the firm was sufficiently liquid to redeem $600 million of USDT with no problems. As USDT is a fiat-backed stablecoin, a broken peg refers to the inability to redeem tokens at face value.<\/p>\n<p>\u201cIt would have been broken if Tether didn\u2019t honor redemption at $1.\u201d<\/p>\n<p>Soon after the Spaces conversation ended, the price of USDT wicked upwards to close the day at $0.9955, much to the relief of the crypto community.<\/p>\n<p>The incident was another major test of investors\u2019 nerves, which were already heavily frayed following the loss of billions via the Terra ecosystem.<\/p>\n<h2>Stablecoins in the spotlight<\/h2>\n<p>Commenting on the situation, SEC Commissioner Hester Peirce, speaking in a live panel debate hosted by the Official Monetary and Financial Institutions Forum, said this week\u2019s events had forced regulators to sit up and pay closer attention to stablecoins.<\/p>\n<p>Peirce did not detail what this could mean precisely, only that potential regulation should allow for a \u2018trial and error\u2019 framework.<\/p>\n<p>\u201cThere are different potential options for approaching stablecoins\u2026and with experimentation, we need to allow room for there to be failure.\u201d<\/p>\n<p>Posted In: Tether, Stablecoins<\/p>\n<h2>Get an Edge on the Crypto Market \ud83d\udc47<\/h2>\n<p>Become a member of CryptoSlate Edge and access our exclusive Discord community, more exclusive content and analysis.<\/p>\n<p>  <strong>On-chain analysis<\/strong><\/p>\n<p>  <strong>Price snapshots<\/strong><\/p>\n<p>  <strong>More context<\/strong><\/p>\n<p> Join now for $19\/month Explore all benefits<br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptoslate.com\/bitfinex-cto-plays-down-reports-tether-was-in-any-trouble\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>During a Twitter Spaces conversation on May 12, Bitfinex CTO Paolo Ardoino dismissed reports that Tether was in trouble. In the early hours of May 12, USDT had shown signs of de-pegging, as its price dipped as low as $0.9410. Source: USDT\/USD on TradingView.com With markets still reeling from Terra UST losing its $1 peg, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4115,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-4114","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/4114","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4114"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/4114\/revisions"}],"predecessor-version":[{"id":4116,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/4114\/revisions\/4116"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/4115"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4114"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4114"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4114"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}