Are we about to see another crash after the latest USDT news?

Kemarit

legendary

Activity: 3080

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Quote from: Milan1009 on August 25, 2022, 11:09:03 AM

Recently the Tornado Cash case was a hot topic within our community and many of us thought it would be over with the frozen wallets.
However, today I was reading an article about Tether allowing the activity for the users in the mentioned platform, as it may be a short-term solution for those in need, it may seem as a collateral trigger for the US regulators towards Tether, if one of the biggest crypto markets in the world chooses to punish the biggest stablecoin at the time, how much lower do you think we will fall?

Source as reference: https://twitter.com/thetokenist/status/1562725412978843649?s=20&t=odhhuWQVbkZ4ueXuVBc_kw

What I wanted to see if how USDT will rebound if ever there will be a crash before of their stance on Tornado Cash. They have been accused of running a fractional reserved, so if somehow they have been de-pegged then we will have to see then. Nevertheless they are going to see what the regulators wanted them do. They explicitly says they will wait for US law enforcement agency request before they will make a move. So it's not like that they are supporting Tornado Cash pe se, or turning their backs on the regulators, they just wanted a formal request before they freeze ETH addresses.

Beparanf

hero member

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Quote from: Milan1009 on August 25, 2022, 11:09:03 AM

Recently the Tornado Cash case was a hot topic within our community and many of us thought it would be over with the frozen wallets.
However, today I was reading an article about Tether allowing the activity for the users in the mentioned platform, as it may be a short-term solution for those in need, it may seem as a collateral trigger for the US regulators towards Tether, if one of the biggest crypto markets in the world chooses to punish the biggest stablecoin at the time, how much lower do you think we will fall?

Source as reference: https://twitter.com/thetokenist/status/1562725412978843649?s=20&t=odhhuWQVbkZ4ueXuVBc_kw

I think that news is not sufficient to bring another crash because only few assets so far is affected on tornado crash compared to what happened on Luna crash that result to billion loss. Tornado cash is just a mixer which means only people that send there assets on regulated exchange will be affected and the rest will sit freely in there wallet except for those huge transaction which is shady imho. This news will just make the recovery slower compared than we experienced last week.

GreatArkansas

legendary

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Merit: 1394

About the recent issue on Tornado Cash, a lot of projects were affected by this.
For me, Tether seems got no choice for now, like other huge projects especially Defi projects under Ethereum, they didn't have a choice, a lot of addresses that are involved Tornado Cash have been not allowed to use other platforms.
So for me, the Tether for sure here will follow, they will have no choice for sure.

But overall, I don't see any crash just regarding for this issue at all.

Baofeng

legendary

Activity: 2576

Merit: 1655

Tether is different story though, I mean they have been in the scope of many regulators and still up to this day they were able to stand up against those accusations, maybe they are cooperating more than ever but still they can't be shutdown.

Tornado Cash case is decentralized as opposed to Tether centralized setup. And that is why they are going all in on Tornado Cash as it is a mixer per definition. So the authorities see them as somewhat involved in concealing 'criminal flow of money'.

Although Tether might encounter another problem if they insists on not to freeze tornado cash addresses.

https://tether.to/en/tether-holds-firm-on-decision-not-to-freeze-tornado-cash-addresses-awaits-law-enforcement-instruction/

WalkerIVIV

hero member

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Cryptocasino.com

Yeah this stable token is only waiting its time until it will be pushed by regulators or even tether being sanctioned by US. This stable token is actually didn't comply with sanction by OFAC/regulators.

https://tether.to/en/tether-holds-firm-on-decision-not-to-freeze-tornado-cash-addresses-awaits-law-enforcement-instruction/

As a centralized stable token and then USDC did better compared with tether in term of regulation compliance. I would say that if tether was pulling its bomb time. We will see another major problem may come for tether as soon as possible.

serjent05

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Get $2100 deposit bonuses & 60 FS

With the fear of their USDT wallet/account being frozen, I think we can experience a massive sell-off anytime soon. It will have an impact on the market, yes, but I think the crash will only be temporary. As far as I know, USDT has funds to support the market buy wall. So if anything happens that the USDT depegged on USD, they can use their fund to support the market and make USDT to Pegged in USD again.

hugeblack

legendary

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Tether is completely centralized currency and is based in the US and therefore with a simple executive order they can make the money in your wallet zero no matter where you put the private key so I don't expect them to be confiscated as happened with Tornado Cash

As for the effect, it will be noticeable in the short term, and a correction of more than 80% may occur, but it is good in the long term.

bittraffic

hero member

Activity: 3038

Merit: 617

It is still unsure if this will trigger dumps, people may start using some other platform far from the reach of regulators.
Tether has yet not frozen accounts but USDC did. However, we are not also sure how reliable the information coming from tokenist.com.

Quote from: https://tokenist.com/tornado-cashs-usdc-frozen-as-stablecoin-censorship-fears-grow/

Consequently, all Americans and US-based entities are barred from interacting with Tornado Cash or any of the Ethereum wallet addresses tied to the protocol. Those who fail to comply may face fines of $50,000 to $10,000,000 and 10 to 30 years imprisonment.

I have not used Tornado but the list is a lot.
USDC banned addresses - https://dune.com/phabc/usdc-banned-addresses

Milan1009

jr. member

Activity: 39

Merit: 2

Recently the Tornado Cash case was a hot topic within our community and many of us thought it would be over with the frozen wallets.
However, today I was reading an article about Tether allowing the activity for the users in the mentioned platform, as it may be a short-term solution for those in need, it may seem as a collateral trigger for the US regulators towards Tether, if one of the biggest crypto markets in the world chooses to punish the biggest stablecoin at the time, how much lower do you think we will fall?

Source as reference: https://twitter.com/thetokenist/status/1562725412978843649?s=20&t=odhhuWQVbkZ4ueXuVBc_kw

Topic: Are we about to see another crash after the latest USDT news? (Read 68 times)