Paolo Ardoino states: The pressure is minor and equivalent to 0.1% or a price of around $0.99, but nevertheless it is enough to prompt cryptocurrency market makers to react.
One would expect the steblicoin issuer USDC, USDT’s main competitor, to be involved here, reasoned a top executive. However, USDC is also being heavily bought back, while a competitor suddenly born two days ago is getting everything.
Ardoino alludes to a new stablecoin called First Digital USD (FDUSD), which was showing a market capitalization of just $20.25 million as of Aug. 2, and then it suddenly jumped more than 10 times to $256.55 million. New dollar-linked stablecoin became the sixth most traded in terms of volume. Overnight, FDUSD trading volume rose from $620,000 to nearly $245 million.
Paolo Ardoino’s observations are indirectly confirmed by financial analyst Adam Cochran, who provided a
additional information. According to his data, in the last 100 days, the network has been recording a massive exchange of USDT to DAI, involving a significant number of addresses. And they are all funded by the same address with a balance of thousands of ETH coming from Binance. Since all these addresses only USDT entered and exited, the expert suggests that the purpose of the actions is probably to artificially influence the USDT exchange rate.
The day before, Binance CEO Changpeng Zhao (Changpeng Zhao) has advised
investors to look beyond large, stable cryptocurrencies and instead focus on smaller, algorithmic stablecoins to diversify risk.