- Austin Campbell highlighted a claimed discrepancy in market sensitivity between the pegs of USDC and USDT.
- Campbell outlined a hypothetical scenario where Tether’s peg could be disrupted if it lacks reserves.
- Campbell suggested a scam where Binance could be selling its customers’ crypto to buy USDT.
Austin Campbell, founder of Zero Knowledge Consulting, highlighted a claimed discrepancy in market sensitivity between the pegs of USD Coin (USDC) and Tether (USDT). Campbell mentioned one behavior when one would buy coins with USDT, swap for USDC incrementally, and then redeem for USD.
Campbell claimed that by doing this, people could sell an unlimited amount of USDT into the market without impacting prices. He said, “This is the claim being made here: that the market is somehow very sensitive to the USDC peg but has zero sensitivity to the USDT peg.” He questioned, “If this USDT is “unbacked” as alleged, then where is the demand to buy it coming from?”
In a scenario where Tether has no reserves or partial reserves, people can easily break the peg by shorting Tether at scale and then starting to redeem, according to Campbell. He said:
You just ne…The post Austin Campbell Highlights a Claimed Discrepancy Between USDC and USDT Pegs appeared first on Coin Edition.