USDT Falls Below $1 Ahead of MiCA Deadline | Airdrop Alert Pro

Tether, the world’s largest StablecoinMarket cap lost $2 billion in December due to challenges posed by the EU’s new Market for Crypto-Assets (MiCA) regulation.

The MiCA regulatory framework will be fully effective from December 30, 2024.

Exchange delists USDT before MiCA

MiCA rules require stablecoin issuers to obtain certain licenses to operate in the EU. Tether obviously failed to satisfy Mika’s stringent requirements, which could jeopardize its future in that jurisdiction.

Thus, European exchanges began delisting Tether’s USDT stablecoin launches in anticipation of regulatory crackdown.

According to CoinMarkCap data, the market value of USDT fell from US$140.5 billion to US$138 billion in the past week, the largest decline in a year of continuous growth.

TetherThe stablecoin, which is pegged 1:1 to the U.S. dollar, is trading at $0.997 at press time, a two-year low for the stablecoin.

USDT Moves: Is There Reason to Panic?

After the implementation of MiCA rules, there seems to be a lot of fear, uncertainty and doubt (FUD) in the market about the legality of USDT in Europe.

However, it should be noted that according to the new regulations, holding USDT is not illegal. USDT can be stored in non-custodial wallets and even traded on them Decentralized exchange.

The problem is that traders cannot use USDT on MiCA-compliant exchanges.

Cryptocurrency analyst Axel Bitblaze even suggestion EU delisting will not have a serious impact on USDT. The analyst pointed out that 80% of USDT’s trading volume comes from Asia, mitigating the EU’s blow.

This is further evidenced by the fact that USDT has only lost 1.4% of its market value despite the FUD rampage. USDT also continues to have higher trading volume than all the top ten cryptocurrencies combined.

In addition, Tether also Prepare For regulatory crackdown scale back its EU operations and Invest in MiCA-compliant stablecoins.

Analysts call for FUD

Tether has faced similar FUD in the past. For example, the FTX bankruptcy in 2022 caused USDT to lose its peg and fall to $0.93. Following the news, BTC fell below $16,000, with traders selling altcoins in panic. However, two years later, Bitcoin has passed the much-anticipated $100,000 milestone.

Most recently, in October, wall street journal According to reports, the U.S. government is investigating Tether for sanctions violations and money laundering. This caused widespread panic in the market, and Bitcoin soon fell by $2,000.

Once Tether’s CEO proved the accusations wrong, the market began to rally. Analyst Axel Bitblaze believes that given the above examples, the FUD surrounding Tether should be viewed as a buying opportunity.

“The funny thing is, you’ll either hear this FUD at a tiny bottom or during a full-blown bull market. Do one thing, take a screenshot of today’s cryptocurrency prices and wait until February/March 2025; you’ll see Most of them are trading at much higher prices than current levels. Not only that, USDT will remain the #1 stablecoin and people will continue to call for its demise, which they have been calling for the past 7 years. A little,” he said.

Blockchain executive Samson Mow also expressed a similar view, saying:

“The time to FUD Tether was probably when its AUM was less than $100 million. USDt currently has $143 billion in AUM and is a top 20 holder of US Treasuries (in addition to 18 countries) Other Countries), managed by Cantor Fitzgerald (whose CEO was the future U.S. Secretary of Commerce), has 16 more trading volumes than its closest competitor (USDC) times) and serve hundreds of millions of users in the southern hemisphere… you have to either be uninformed (Jason haha) or have an agenda,” Mow point out.