While the Terra (LUNA) crash is afflicting millions of individual investors, it seems that even whales are skeptical about stablecoins. According to data provided by Santiment, giant wallets are selling off massive amounts of Tether (USDT) while delisting LUNA.
Whales sold 710 Tether (USDT) in fear of LUNA
The largest whale wallets sold 710 million Tether (USDT) during yesterday’s crash, as on-chain data provided by Santiment reveals. On May 12, USDT price reached $1 again after briefly dropping by $0.97. The massive sale is currently considered the largest daily USDT sale of whales. Santiment did not share clear data about which network these addresses are on. On-chain company roughly said in its posts during the day:
Amid doubts about the seriousness of Tether’s loss of $1, whale addresses sold 710 million USDT today. The largest daily sale in the history of the largest stablecoin took place.
The root cause of such panic among whales is most likely the IHR price stability was lost. Some of the market’s largest stablecoins have reported massive exits from exchanges and decentralized smart contracts.
Investors turn their eyes to the next stablecoin
As Kriptokoin.com, we have covered all the news about Terra chronologically in this bulletin. Tether, on the other hand, is a significantly larger stablecoin than Terra and they claim to back USDT with a cash reserve. Despite the temporary drop below $0.99 amid the exceptionally high volatility in the cryptocurrency market, which was the cause of yesterday’s $0.97 drop, Tether (USDT) has quickly managed to reclaim its always-maintained $1 stable, according to data from CoinMarketCap.
Tether’s reserves are significantly higher than UST, which is backed by two extremely volatile cryptocurrencies like Bitcoin and Luna. According to Tether’s official website, they back stablecoins with real cash or equivalents and short-term deposits. Only 6.3% of Tether’s support is based on cryptocurrencies marked as “other investments”. But despite everything, it’s worth noting that Tether got $1 back in more than a week.
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