The binance-FTX saga shook the entire crypto industry in the past few days. Following the bombshell, almost all major stablecoins like Tether, lost their pegs, but fortunately managed to revive again. Now it’s been said that the market is in a more stabilized condition than what it was a couple of days ago.
The collapse of the FTX exchange this week, caused significant volatilities in the market, leading most major stablecoins to destabilize. Among these, is the world’s most well-known and popular stablecoin, Tether, which declined to $0.97 on Nov 10th. Though it slightly rebounded to $0.99, USDT price is still a little below its all time peg at the time of writing.
Not only Tether, but also Tron based tokens have tanked heavily following the notion, with Tron falling by 12% since the beginning of the week. Justin Sun, founder of Tron, accused FTX and sister company Alameda of shorting USDD.
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Following the Nov 10th deal between FTX and Binance, holders of assets such as TRX, BTT, JST, and SUN were allowed to withdraw their funds. So many of them have rushed to buy these tokens in hope of compensation for their loss. However, this might add to their loss should they then sell it on other exchanges.
In the midst of these accidents, FTX CEO has reached out to other companies for help. Among these called names were Tether. Nonetheless, it didn't take long for Tether’s chief officer to announce that the company does not have any plans to rescue FTX.
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In a Tweet on November 10, Paolo Ardoino confirmed the company does not have “any plans to invest or lend money to FTX/Alameda.”
The Tweet reads:
Tether does not have any plans to invest or lend money to FTX/Alameda. Full stop.
— Paolo Ardoino (@paoloardoino) November 10, 2022
This keeps the whole crypto industry waiting to see what happens to the future of this controversial exchange and the effects it might have on the entire market.