**Tether CTO Paolo Ardoino Explains Brief USDT Price Discrepancy Amid Binance Legal Battle**
Paolo Ardoino, the Chief Technology Officer of Tether, is addressing the recent depegging of USDT, the largest stablecoin in the world. Over the weekend, USDT appeared to lose its peg to the dollar, trading as low as $0.94 on Binance.US. However, Ardoino clarifies that USDT never actually lost its peg to the dollar. The price discrepancy was caused by liquidity issues on Binance.US’ platform, unrelated to the stablecoin itself. Binance.US is currently facing legal challenges, making it difficult to find market makers and maintain liquidity. Ardoino points out that Tether is responsible for its primary market, while market making on secondary markets is the role of arbitrageurs and professionals. Despite the spread in price, Ardoino emphasizes that this does not mean Bitcoin is worth less globally. Binance.US is currently battling the U.S. Securities and Exchange Commission to prevent the seizure of its assets.
**Key Points:**
– USDT did not lose its peg to the dollar; the price discrepancy was caused by liquidity issues on Binance.US’ platform.
– Binance.US is facing legal challenges, making it difficult to find market makers and maintain liquidity.
– Tether is responsible for its primary market, while market making on secondary markets is the role of arbitrageurs and professionals.
– The spread in price between BTC/USD and USDT/USD does not mean Bitcoin is worth less globally.
– Binance.US is currently battling the U.S. Securities and Exchange Commission to prevent the seizure of its assets.
**Hot Take:**
The recent depegging of USDT on Binance.US was not due to any fault of the stablecoin itself. It was caused by liquidity issues on Binance.US’ platform, which is currently facing legal challenges. Tether, the issuer of USDT, remains responsible for its primary market, while market making on secondary markets falls to arbitrageurs and professionals. The price discrepancy between BTC/USD and USDT/USD should not be seen as an indication of Bitcoin’s value globally. Binance.US is currently fighting against the U.S. Securities and Exchange Commission to protect its assets.