- Tether addresses holding $100k to $10m in USDT have dropped -50.5% of their coins.
- This could be caused by the criticism surrounding Tether after the UST collapse.
- Some speculate that 85% of Tether’s holdings are backed by Chinese or Asian unsecured, short-term debt and are being traded at a 30% discount.
On June 16, Santiment tweeted “as crypto’s bear market continues, we’re watching Tether’s continued drop in percentage of ownership from large addresses”. They elaborated on this by stating that “addresses holding $100k to $10m in USDT have dropped -50.5% of their coins since their peak hold of the supply 18 months ago.”
Tether (USDT) Supply Distribution (Source: Twitter (NYSE:TWTR))
This could be caused by the vast amounts of rumors and criticism surrounding Tether after the UST collapse. The most recent rumor speculates that 85% of Tether’s holdings are backed by Chinese or Asian unsecured, short-term debt and are being traded at a 30% discount.
Tether has already responded to these allegations and stated that they are completely false and that it is only an effort to spook investors out of Tether and turn a profit on its failure.
Another reason could be the uncertainty currently seen in the market amid a broader market crash in cryptocurrencies and the nervousness around investors following Celsius’ call to stop withdrawals and deposits on Sunday last week.
Tether also responded to this threat and stated that “Tether has currently zero exposure to Celsius apart from a small investment made out of Tether equity in the company.”
Another factor to take into consideration is the fact that there are also rumors about Tether having lending exposure to Three Arrows Capital, which is currently going through unforeseen liquidations.
Once again, Tether responded to this by stating it is completely false, but it seems like the damage has already been done.
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