SBF attempted to de-peg the largest stablecoin by daily traded volume, Tether USDT, before filing for bankruptcy protection.
The latest details of FTX and Alameda’s pre-bankruptcy protection shows that Sam Bankman-Fried (SBF) allegedly tried to remove stablecoins. According to a WSJ report, SBF clashed with other crypto executives from a Signal group chat called “Exchange Coordination”. Reportedly, chang peng zhaoThe CEO of Binance, confronted SBF on November 10, accusing him of trying to de-peg the market from stablecoins.
“Stop trying to remove stablecoins,” CZ noted in the Signal group chat.
According to aggregated data from Binance-CoinMarketCap supported, stablecoin market valuation of approximately $142,925,239,438, with 24-hour trading volume of around $27.57 billion. Damaging the stablecoin market could significantly destabilize cryptocurrency, which is highly dependent on major stablecoins such as Tie Y USDC during high volatility.
“Stop doing anything. Stop now, do no more damage,” CZ and Tether officials told SBF.
SBF reportedly attempted to de-peg the largest stablecoin by daily traded volume, Tether USDT, before filing for bankruptcy protection.
Notably, Tether USDT has maintained its peg to the US dollar for the most part since its inception. As of Monday, during early Asian trading sessions, USDT posted a fully diluted market capitalization of approximately $73,147,482,832 with 24-trade trading volume of approximately $20.9 billion.
A Wider Look at SBF’s Shares in the Crypto Market
While the prices of most Bitcoin-led digital assets remain significantly down compared to late last year, the crypto market has become more resilient over time. The respective jurisdictions have enacted clear global regulations on cryptocurrencies. Nonetheless, governments around the world are seeking to review operating licenses for centralized crypto exchanges following the FTX implosion.
Furthermore, FTX and Alameda were key players in the industry and their demise has led to the failure of more related companies.
As such, market strategists argue that the current bear market may be longer than previous ones due to the macro aspects at play. Furthermore, the cryptocurrency market has shown a significant correlation with the traditional stock market, specifically with the main global indices.
While SBF continues to be investigated by different jurisdictions, around 1 million FTX clients have been left stranded. Even more so because of the bizarre $450 million FTX hack, which happened just hours before SBF filed for bankruptcy.
In particular, non-custodial crypto wallets and decentralized exchanges aka DEXs have gained more traction in recent weeks following the FTX crash. Trading volume on major cryptocurrency exchanges has plummeted significantly, and analysts expect it to not increase anytime soon.
It’s more, coin base indicated in its recent quarterly earnings report that digital asset trading volume is expected to remain low for the next few months. Thus, it raises fears of a possible decline in the value of most digital assets.
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