Tether CTO refutes USDT depeg and points to CoinGecko data issues

The observed 3% deviation of USDT from $1 on CoinGecko was due to a glitch, not a real state of affairs. This was stated by Paolo Ardoino, CTO of the stablecoin issuer.

Seeing a price discrepancy of USDt on coingecko. While USDt trades close to parity (+-10bps), coingecko reports 3% from parity.
Looks like a glitch to me.
Binance, Bitfinex, Coinbase are all trading within 10bps from parity.

— Paolo Ardoino 🍐 (@paoloardoino) November 9, 2022

According to the executive, quotes on Binance, Bitfinex, Coinbase were within 10 basis points of parity.

He urged calm and reminded that Tether Limited is obliged to redeem USDT at $1 per token, a commitment that has never been breached.

From Ardoino’s subsequent messages it emerged that CoinGecko had problems with data feeds from Coinbase. They were removed from the calculation of the volume-weighted average price, and after the errors were fixed they were reintroduced.

CEO Bobby Ong admitted the incorrect display of the USDT price and apologized. He linked this to API connection issues on several exchanges. Ong promised to monitor the situation after the issues were resolved.

Sorry about the USDT FUD from our side. Tether did not depeg. There was a data issue on our side coming from API connection issues with a few exchanges. We have patched the issue but monitoring things closely. https://t.co/ZWYC7qHImv

— Bobby Ong (@bobbyong) November 9, 2022

Earlier, stated on November 6 that Binance CEO Changpeng Zhao zаявил his intention to divest from the FTX utility token (FTT). Assets, together with BUSD, totaling about $2.1 billion, were the result of the company’s exit from its portfolio investment in the platform Sam Bankman-Fried.

On November 8, FTT fell by almost 30% amid concerns about the exchange’s financial soundness. At the same time, the Bitcoin price dropped below the $20,000 level, dragging the entire market.

On the same day Bankman-Fried and Zhao announced a strategic partnership. It is meant to address the liquidity crisis and implies a possible acquisition of the FTX exchange by Binance.

Earlier Coinbase and Circle dismissed the impact of Bankman-Fried’s exchange problems on their business.

Binancetopped up the SAFU fund to $1 billion for customers’ peace of mind.

In October the US Department of Justiceresumed its inquiry into possible bank fraud by Tether’s executives, according to Bloomberg.

In June, media reported on the ‘popularity’ of short positions in USDT amid adverse market conditions and the Terra ecosystem collapse. о «популярности» коротких позиций по USDT на фоне негативных явлений на рынке и коллапса экосистемы Terra.

Тогда Ardoino заявил, что компания обработала конвертацию в fiat 7 млрд токенов (~10% от общих активов).

In August, the Tether CTO said the commitment to this line remained after the world’s fifth-largest auditor confirmed the collateralization of the stablecoin.

In October the companyzeroed out the share of commercial papers in the collateral backing USDT. Before this, itdenied rumors of dominance in reserves of such financial instruments, issued by Chinese firms.

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