- The exchange will move assets from the TRX pool to ETH directly from Tether
- With its warning, the company wants to quash any possible rumors
- June 15 USDT lost its peg to the dollar
- And while Tether claims financial strength, any careless capital movement could trigger an avalanche
The cryptocurrency exchange Binance today, June 16, warned users about moving 1.25 billion USDT in internal circuits. In this way the platform tries to suppress any possible panic rumors.
Transfer is expected to take place today around 09:30 UTC (12:30 Kiev time). At this time, Binance accounts will see an outflow of a specified amount of USDT.
The exchange noted on its Twitter page that this is necessary to maintain a balance of liquidity. The platform will exchange 1.25 billion USDT-TRX for USDT-ETH directly with the Tether team.
The company urged not to consider this a “drain” or rebalancing:
“Your SAFU funds.
This caution is not at all unnecessary given that USDT lost its USDT binding yesterday. At the same time, the share of stabelcoin in Curve Finance and Uniswap pools is still holding at a fairly high level.
In such a situation, the actions of any major asset holder are under close scrutiny. Careless capital movements can lead to panic in the market and then a “domino effect.”
This is also what one commenter under the Binance post noted:
“There are very large numbers involved.. Guaranteed to be FUD. We’ve seen this before when FTX announced a capital shift before bankruptcy. But I’m still confident that Binance, as always, SAFU.”
We note that yesterday, June 15, Tether CTO Paolo Ardoino gave a fresh comment on the situation. He said such a scenario serves as a good stress test.