© Jakub Porzycki via Reuters Connect
Investing.com – After yesterday’s failed takeover of struggling crypto exchange FTX by rival Binance, the fire seems to be spreading. The bankruptcy-threatened cryptocurrency exchange and trading firm Alameda Research are struggling to survive, which today also puts the stablecoin in trouble.
This has meanwhile collapsed by almost two percent and has not yet been able to recover to its $1 comfort zone. According to TheBlock, a wallet associated with Alameda Research took out a 250,000 USDT credit on . The funds were then transferred to Curve. It is speculated that this amount is to be used for short selling.
These transactions in turn upset the balance of the Curve ecosystem, as there is an overweighting of USDT at the expense of other stablecoins.
Tether CTO Paolo Ardoino, however, says there’s no need to worry, as repayments to the tune of $700 million have taken place without issue in the past 24 hours.
The shock wave that started with the FTX liquidity crisis clearly still has a strong grip on the market.
By Marco Oehrl