IT scientist from Australia Craig S. Wright, widely known to the crypto community as the self-proclaimed Satoshi Nakamoto or Faketoshi, has taken to Twitter to attack the USDT stablecoin issued by Tether.
CSW slams Tether after Mr. Whale’s tweet
CSW responded to a tweet by a prominent crypto expert who goes by the alias Mr. Whale on Twitter.
The latter reminded the community about the statement made by the U.S. securities regulator SEC recently, where they said that “proof of reserves” means nothing and proves nothing about crypto reserves of digital exchanges.
Therefore, he believes, the SEC plans to initiate a reinforcement action against the issuer of the biggest stablecoin by market capitalization in the market. The regulatory agency, according to the expert, just hinted at such a move but they avoid saying this outright, fearing that this would break down the whole cryptocurrency industry. Mr. Whale concluded his tweet, assuming that “Tether will 100% go bust.”
Craig Wright commented on that, saying that “they are bust” already and likened USDT to “a dead coin walking.”
Tether are bust.
Already… dead coin walking https://t.co/BcM9ONE2zY pic.twitter.com/GNs5WbVIve
— Dr Craig S Wright (@Dr_CSWright) March 24, 2023
Tether’s USDT outpaces USDC and BUSD
Still, USDT remains the most popular USD-pegged stablecoin in the market — it is still on the top three list of cryptos by CoinMarketCap and its market capitalization currently sits at $79,091,618,240.
The other two popular stablecoins, which were close to it, BUSD and USDC, have been left behind. Binance and its partner Paxos have stopped minting BUSD. Besides, recently CZ of Binance announced that around 2 billion BUSD will be burned.
USDC faced a risk of depegging from the USD when the banking crisis in the U.S. started and the first three large banks — Silvergate, Silicon Valley Bank and Signature Bank — were announced insolvent. However, the U.S. government promised its clients to help them keep access to their deposits.
This crisis in the banking sphere continues. It has nearly killed USDC but also propelled the price of Bitcoin to the $28,000 peak and pushed Ethereum back to $1,800 briefly.