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Total USDT in circulation fell by $9 billion over the week

Over the past seven days, investors have reduced the total amount of USDT stablecoin in circulation from $83 billion as of May 12 to $74 billion on May 18.

According to data CoinGecko, Tether’s stablecoin, continues to rank third by market capitalization in the cryptocurrency market.

A prerequisite for the reduction in turnover by $9 billion was the recent collapse of the algorithmic stablecoin UST, as well as its subsequent delisting and LUNA from the trading floors. Amid the UST hype, the USDT stablecoin temporarily lost its peg to the US dollar on some exchanges, dropping to $0.95. However, it has now recovered to $1.

CryptoQuant CEO Ki Young Ju asked Tether CTO Paolo Ardoino tweeted whether the USDT currently in circulation is fully backed. Ki Yong Joo noted that not only regulators want to get an answer to the question. Companies and ordinary crypto investors also want to know this, as they are worried about the depreciation of the US dollar and are interested in investing in bitcoin ETFs.

“Tether secured 7 billion in 48 hours without blinking an eye. How many institutions can do the same? We will continue to work if the market wants it. We have the liquidity to process large payouts at a 1:1 ratio. Yes, USDT is fully backed.” wrote in response to Arduino.

The head of CryptoQuant asked when Tether is going to conduct another USDT audit. Ardoino replied that the company is already working on it. He also hopes that regulators will create conditions for the development of cryptocurrencies, in which accounting firms will treat them more friendly.

Detailed information about the USDT stablecoin collateral first appeared in May 2021. At that time, about 76% of USDT was backed by traditional currencies and obligations in them. According to a Tether report released in February 2022, the company reduced its securities holdings by more than $6 billion in four months.


Source: Bits

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