Tether denies USDT’s depegging from the dollar

The company’s CTO Paolo Ardoino said that CoinGecko’S data about a 3% decrease in the asset’s rate is unreliable and is the result of a system failure

09.11.2022 - 15:45

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What’s new? Bitfinex and Tether CTO Paolo Ardoino has denied the depegging of the centralized stablecoin USDT from the US dollar. He said that data from aggregator CoinGecko showing a 3% decrease in the asset’s rate is unreliable and is the result of a technical failure. Ardoino stressed that USDT trades within 10 basis points from parity on cryptocurrency exchanges Binance, Bitfinex, and Coinbase. Co-founder and COO of CoinGecko, Bobby Ong, apologized for FUD (misleading information triggering an asset’s sales).

Sorry about the USDT FUD from our side. Tether did not depeg. There was a data issue on our side coming from API connection issues with a few exchanges. We have patched the issue but monitoring things closely. https://t.co/ZWYC7qHImv — Bobby Ong (@bobbyong) November 9, 2022

What was the cause of the failure? According to CoinGecko’s COO, the aggregator had a problem with the API connection on several exchanges, which resulted in incorrect data display. Ong assured that the problem has been fixed, and the platform is closely monitoring the situation.

Ardoino previously stated that Tether did not invest in the FTX crypto exchange or trading company Alameda Research, owned by Sam Bankman-Fried. This was probably his way of reassuring the community, agitated by FTX’s collapse due to the crash of the native token FTT and the ensuing liquidity problems.

To be clear: #Tether does not have any exposure to FTX or Alameda. 0. Null.Maybe is time to look elsewhere.Sorry guys. Try again. https://t.co/1bRNUGrttr — Paolo Ardoino 🍐 (@paoloardoino) November 9, 2022

USDT from the issuer Tether is the largest centralized stablecoin and ranks third in the overall cryptocurrency ranking with a capitalization of $70 billion. As of November 9, at 15:20 UTC, CoinGecko updated the asset’s rate, and it is trading at $1.

Earlier, the MIM stablecoin, 31,32% backed by FTT tokens, lost parity against the US dollar, falling below $0,975. The reason was the liquidation of FTT by the Binance exchange, which began on November 5. At the moment the asset has almost restored its peg, having risen to $0,996201 (+2% in 24 hours).

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