Markets haven't been reassured by assurances that the token is backed by ample reserves.
As of Friday, the token accounted for 65 percent of the total in the pool that allows traders to swap between the three biggest stable coins. Edul said that it was an indication that investors were cautious about holding Tether.
The collapse of the TerraUSD stablecoin in early May led to increased scrutiny of the assets it claimed to be backed by. Leon Marshall, Genesis Global Trading Inc.'s head of institutional sales, was cited by the Wall Street Journal as saying that short sellers have increased their bets against Tether.
Since TerraUSD's implosion, the market value of tether has fallen by $600 million.
The Curve had a 3 pool imbalance after Terra collapsed.
The dashboard was generated on DuneAnalytics.
It isn't a surprise that more people holdUSDT and have it available to swap for other assets that they want to use for other purposes. The main dollar-based stable coin is calledUSDT.
Just before TerraUSD started deviating from its peg, the share of supply on Curve's 3 pool stood at 29.9%. The portion jumped as high as 18% on May 12 as the TerraUSD crisis got worse.
While the share of supply has declined, it is still much higher than before the TerraUSD crisis. Some of the decrease has been reversed.
A total of $117 million was traded on the 3pool platform.
Despite all the questions surrounding it, tether is still widely used even though it's close to the dollar peg. The cost of buying a token with Argentine pesos went up after the economy minister resigned.
The quality of the reserve of dollars and dollar-equivalent assets that tether relies on has been called into question.
A quarterly attestation from a Cayman Islands accounting firm shows that tether has been decreasing its exposure to commercial paper in favor of more liquid instruments.
Fir Tree Capital Management made a big bet on Tether, predicting it would pay off in a year.
The debate about shorting tether has renewed.
Since TerraUSD cratered, Paolo Ardoino has taken to social media to assure the market. After the Journal story was published, he said that tether has never failed a redemption and has cut its commercial paper holdings by around 45 billion dollars.
1/I have been open about the attempts from some hedge funds that were trying to cause further panic on the market after TERRA/LUNA collapse.
It really seemed from the beginning a coordinated attack, with a new wave of FUD, troll armies, clowns etc. https://t.co/hhcsgHV1Ow
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