The European Union announced that it will remove Tether (USDT) from European trading platforms within 3 days. This decision has many investors and analysts asking whether this is the real end of Tether or just a political or economic move to change the rules of the game?
Tether is the most famous stablecoin, but there are always question marks and many legal complaints surrounding it due to the lack of transparency in its financial accounts. Despite all of this, Tether has maintained its position as the largest stablecoin in the market. But can it survive after leaving Europe?
What would happen if Tether left the European market?
Major impact on liquidity Tether is the backbone of liquidity on trading platforms. Its exit will create a large gap and prices will be subject to violent fluctuations, especially in the European market.
Source: CryptoNews
Increased costs for investors: Without Tether, people will be forced to convert their money into other stablecoins like USDC or DAI, or even back into their local currency. This will increase their costs and expose them to exchange rates that may be against them. Source: CoinTelegraph
Stablecoin Battle Tether's exit will open the way for other currencies to take its place, such as USDC and BUSD, and this could cause some fierce competition or even temporary chaos in the market Source Decrypt
Does this mean that the market will collapse?
Although Tether's exit from Europe is a big step, the market will not stop there. Expert "Elena Rodriguez, Professor of Economics at Oxford University, believes that this decision aims to regulate the market more, but it will not be the end of the market. Source: Financial Times
On the other hand, analyst David Lee says that the impact of this decision will be limited globally because Tether has great use in other markets such as Asia and America. Source: Forbes
How to prepare for the next stage
Review your investments If a large portion of your portfolio is in Tether, consider converting part of it to other stablecoins like USDC or DAI or even invest in strong coins like Bitcoin and Ethereum.
Source: Investopedia
Keep some of your money ready in cash or in quick-liquidation investments so you can act if a sudden opportunity arises.
Source: Nasdaq
Follow trusted sources like CoinDesk or well-known analysts who provide accurate market analysis.
You can distribute your investments 40% in USDC
30% in DAl
20% in Bitcoin or Ethereum
10% in your local currency to be prepared for any emergency.
Source: Blockworks
Tether's exit from the European market does not mean that the market is collapsing, but it is definitely a major turning point. This change is an opportunity for smart investors who know how to adapt quickly. Prepare, follow up, and take advantage of the opportunities that may appear. The game is still running, and the profit always goes to those who are ready. This is, of course, just an analysis and opinion, not financial advice 👻😊