Paolo Ardoino, CTO of Tether and Bitfinex, has responded to growing fears in the crypto market with an assertive tweet stating, “Markets are edgy in these days, so it’s easy for attackers to capitalize on this general sentiment. But at Tether we’re ready as always. Let them come. We’re ready to redeem any amount.” The statement seems to address recent speculations and rumors (FUD – Fear, Uncertainty, and Doubt) circulating around increased deposits of Tether’s stablecoin USDT into the Curve 3Pool.
An analyst using the Twitter handle ‘Fortitude’ had raised concerns about the sudden increase in USDT deposits into the Curve 3Pool. “Why is USDT being deposited into the Curve 3Pool in such great quantities? Now the percentage is 50%, up from 30% just 48h ago. Do they know something we don’t?” questioned Fortitude.
The commentator went on to suggest that such sharp spikes in asset deposits often precede significant market events, citing examples of the USDT depeg in May 2022 in relation to Luna/Terra, the FTX incident in November 2022, and the USDC depegging in March 2023. The analyst expressed hope that the increased USDT deposits were a “nothingburger”, while maintaining an interest in the ensuing developments.
USDT has a longstanding history of being a focal point for FUD within the cryptocurrency space. Critics frequently express skepticism towards the stablecoin’s peg to the US dollar, and rumors of insolvency have circulated in the past. Tether has consistently refuted these claims, maintaining that every USDT token is fully backed by reserves.
In response to the concerns, Ardoino’s tweet portrays a confident stance, emphasizing Tether’s preparedness to handle any potential market turbulence. By asserting that Tether is ready to “redeem any amount,” Ardoino implies the company’s robust reserve position, seeking to quell anxieties surrounding its solvency and the stability of USDT.
This public response from Tether’s CTO is part of an ongoing effort by the company to address concerns and maintain transparency in its operations. The rapidly evolving cryptocurrency landscape continues to prompt companies like Tether to stay proactive in dispelling market fears and ensuring stability for their users.