$USDT is being delisted from exchanges in the EU, how bad is it really?
▶️ #thoughts
💲Every bull run has three common traits: rapid growth of various tokens, a crypto ban in China, and FUD/issues surrounding Tether.
• This happened in 2017, 2021, and is happening again this time.
▫️$USDT will be excluded from
exchanges in the EU as it
does not comply with the new EU rules - MiCA. More about MiCA - here.
▫️There is a lot of misinformation circulating that USDT is considered illegal in the EU, so let’s clarify this first:
• First of all, holding $USDT in the EU will not be considered illegal. You can hold $USDT in non-custodial wallets and use them for trading on DEX;
• The limitation is that you cannot use $USDT for trading on exchanges compliant with MiCA.
🐻What about the trading volume of $USDT and its peg to the dollar?
▫️$USDT is the largest stablecoin with a market cap of $138.5 billion and a daily trading volume of ~$45 billion;
▫️As of today, 80% of the trading volume of $USDT comes from Asia, so the delisting in the EU will not have a significant impact;
• This is also evident in the change in the market cap of $USDT amid the delisting, which has only decreased by 1.2%, despite the fact that this news is circulating all around crypto Twitter and beyond.
❤️However, one should not forget about diversification even in stablecoins, so it definitely wouldn’t be a mistake to hold at least a portion in $USDC.
👍As we can see, globally, nothing serious has happened, and most likely, Tether will find a workaround to this decision and Tether will be back on all crypto exchanges (but possibly under a different ticker).
😎DOUBLETOP — more than crypto