The cryptocurrency market never sleeps and will often provide some form of entertainment. Seeing Tether’s USDT asset crash across Indian exchanges is unusual and creates a tremendous market opportunity for those buying the dip. After that, everything is back to normal, although there are still several happy people.
Tether Flash Crash Across Indian Trading Platforms
- India is an intricate country regarding cryptocurrency regulation and guidelines.
- While currencies are not officially banned, trading is strongly discouraged and punishable by law.
- Following a new piece of legislation, there is even more regulatory uncertainty.
- That document triggered a flash crash for Tether, the issuer of the USDT stablecoin.
- Although USDT should maintain a value of $1, or 74.3 rupees, it dipped to 60 rupees on WazirX.
- Interestingly, the price peg remained intact on all trading platforms not located in India.
- The price dip triggered opportunistic traders’ market potential to buy the Tether dip.
- Arbitrage opportunities involving the industry’s leading stablecoin do not appear all that often.
- Traders could sell Tether back a few hours later for a near 20% profit with ease.
- The value was restored quickly, though, but incidents like these might happen again.
- It is unclear if this dip results from technical glitches or traders dumping USDT hand over fist.
- However, the premium at which traders acquire USDT – near the 80 rupees mark – seems to have evaporated completely.
- It is not the first time USDT has crashed across Indian exchanges.
- A similar dip occurred in early 2021 when the peg dropped to 61 rupees following a different piece of crypto legislation.
- Unfortunately, it seems as if this pattern will repeat itself for a while to come.
- India cannot take an official stance on crypto despite numerous government officials wanting to ban it completely.
- Additionally, the Reserve Bank Of India will develop a digital rupee.
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