In 3 days, Tether will be removed from centralized exchanges in the European Union.
In 2022, FTX and Celsius collapsed, causing the market to drop by 70%.
The end of $USDT means the end of cryptocurrencies. Here's what's happening 🧵👇
Over the past two weeks, there has been a lot of fake news (FUD) about $USDT.
Some say that removing the currency from EU platforms would destroy the entire cryptocurrency market.
Will we see another crash similar to what happened with FTX?
Or is it just a media gimmick aimed at driving weak investors out of the market?
Let's analyze what's really happening.
Let's start with the history of Tether.
The company has continually faced issues with issuing and legitimizing its assets.
Made false promises about audits, got huge fines, etc.
Here are all the conflicts I've faced since 2017 👇
From the beginning, Tether claimed that each of its coins was backed by real dollars in a bank.
But in 2019, the New York Attorney General said that claim was false.
Additionally, the alleged association with Bitfinex cast a negative shadow on Tether.
Under heavy pressure, many have begun accusing Tether of not conducting proper auditing since 2017.
They promised to conduct the audit "within a few months" over the course of seven years now.
But to this day, no public audit has been conducted.
What problems might Tether face if it leaves the EU market?
1. Low liquidity
USDT is the dominant stablecoin.
Removing it from EU trading platforms could lead to reduced market liquidity.
Making it difficult for traders to execute large orders without affecting prices.
2- Increased transaction costs
Investors may need to convert their holdings into alternative stablecoins or fiat currencies.
Which may result in additional fees and less favorable exchange rates.
3- Market fragmentation
The absence of USDT could lead to market fragmentation, as traders may move to platforms outside the EU or prefer other stablecoins.
This shift may impact the cohesion of the trading environment, creating inefficient efficiencies.
◇ But what will happen in reality?
Personally, I don't think this is the end for #Tether.
They have been facing FUD since 2017.
Every year new problems arise for them to face.
This year will not be different.
If your stablecoin portfolio only contains USDT, I recommend following the 33/33/33 rule.
Leave 33% in USDT, exchange 33% to USDC, and 33% to your country's local currency
This way, you will be ready for any market move.
Here we have reached the end of this article
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