By Brenda Collins
Recent events have raised questions and generated discussions over whether FUSD is unfairly acquiring an advantage over its rival, USDT. Paolo Ardoino, Tether’s Chief Technology Officer (CTO), has added to the rumors with cryptic tweets that imply potential market manipulation.
The CTO of Tether, Arduino, tweeted a series of cryptic messages amid a continued drop in USDT, reaching $0.9986. Ardoino’s tweet was quoted as thus: “The truth lies beyond the surface; not usually what you see is what you get.” The tweet was considered vague, and the cryptocurrency community has started reading meaning into it, stoking accusations of market manipulation and further damaging trust in stablecoins.
The USDT is still tied to the US dollar at a 1:1 ratio and trading at $0.9996. However, FDUSD, a stablecoin that resembles Tether, also upholds a 1:1 peg to the US dollar. However, the unexpected increase in FDUSD’s market capitalization, which rose by roughly 70% in just two days, sparked suspicion.
Reacting to the statement, many notable figures in the cryptocurrency industry have started commenting on this development. ETH News’s Jane Smith has said that such a large gain in such a brief period attracted attention, and many questioned the legality of this quick expansion.
The report also states that the USDC stablecoin appears to have suffered due to FDUSD’s explosive popularity. Data from ETH News showed that USDC’s trading volume has dropped to a two-year low. Smith added that the decrease in USDC activity further complicates the stablecoin ecosystem since traders and investors may shift their capital to more lucrative alternatives.
Also read:Ardoino’s Cryptic Message Gets More Attention, Cryptocurrency Community Demands Transparency
The information gathered on this development shows that more analysts and industry professionals have started wondering if FUSD is getting an unfair advantage against USDT and other stablecoins. Concerns regarding potential market manipulation and insider trading have grown due to the stablecoin market’s lack of transparency and Ardoino’s cryptic statements.
Traders and other stakeholders have made up the list of people demanding increased regulation to protect investors and the entire financial system due to worries about potential hazards, a lack of accountability, and the prospect of a market manipulation.
Through a vox populi on Ardoino’s tweet, the cryptocurrency community is urging stablecoin issuers to be more transparent and accountable in response to the mounting concerns. They have listed some recommendations for restoring trust in stablecoins, including transparent and regular reserves audits, increased disclosure of operational procedures, and adherence to regulatory requirements.
Analysis on the ETH News platform said that the tweet by the CTO of Tether has served as a wake-up call for the sector to solve these problems right away. There has been a growing fear over the regulations of stablecoins, which has also spiked some debates over time.
The emergence of new stablecoins like the FDUSD has been doubted, with some saying that it makes the industry’s future unpredictable and highly volatile. The stablecoin landscape looks under some external pressure, as other cryptocurrency sections have continued to receive their fair share of pressure from the regulatory authorities.
News also states that Tether is currently in a dispute with one of the United States regulatory authorities. Recall that in 2021, the company was penalized $18.5 million and $41 million (individually) for false claims by the Commodity Futures Trading Commission (CFTC) – a comprehensive audit report is yet to be presented by Tether to date.
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