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- Litecoin Foundation and CEO of Coinut exchange Xinxi Wang advises the crypto users by sharing his views on Twitter saying the whole crypto market capitalization is now built on sands, by sands he is pointing towards the USDT.
- This statement generated by Wang seems that if USDT is dragged down, it will affect the entire market cap to crash.
- The token can be freely exchanged to USD and its market cap is completely different from all other tokens.
Today, the Director of the Litecoin Foundation and CEO of Coinut exchange Xinxi Wang advises the crypto users by sharing his views on Twitter saying the whole crypto market capitalization is now built on sands, by sands he is pointing towards the USDT.
USDT is just like Heroin
The entire crypto market cap is now built on sands, i.e. USDT. That's like Heroin, and there is no way for Tether to stop minting.
However, the US won't allow that grow forever and will take it down eventually, and by that time, the entire market cap will crash. https://t.co/70MWK1VBg8
— Dr. Xinxi (@TheRealXinxi) April 25, 2020
He further states that USDT is just like Heroin, and there is no other method for the Tether to stop minting. Moreover, the US will not let to increase it forever and will pull it down and till then, the whole market cap will crash.
This statement generated by Wang seems that if USDT is dragged down, it will affect the entire market cap to crash.
The market will witness crash
Tether (USDT) is a dollar-pegged token, which means 2.2 billion USDT is actually equivalent to 2.2 billion USD. The token can be freely exchanged to USD and its market cap is completely different from all other tokens.
Some of the crypto advocates state that believing in Tether is similar to believing in US dollars. In crypto ecosystem, the Tether is valued like a real dollar. In order to mint more USDT could be unsafe if Tether Limited does not hold the corresponding amount of USD in its bank.
Thus, it is assumed that the valued cryptocurrency USDT is just like a ticking bomb on the crypto market where if the USD is pulled out then the entire crypto market will be shattered.
