Despite recent delistings in Europe, Tether (USDT) seems to be holding its own, according to the CEO of CryptoQuant.
EU Delistings and Market Reaction
Several European crypto exchanges have stopped offering Tether due to new EU regulations (MiCA). These rules require stablecoin issuers to get special licenses to operate in the EU, and Tether hasn’t gotten one yet. This news caused some worry in the market, with Tether’s market cap dipping slightly and its price briefly falling below $1.
CryptoQuant CEO’s Take
However, Ki Young Ju, CEO of CryptoQuant, isn’t seeing a major impact. He shared a chart showing that the amount of Tether held on exchanges hasn’t dropped significantly. He argues that this indicates continued strong demand for the stablecoin, despite the negative headlines. In essence, he’s saying the fear, uncertainty, and doubt (FUD) surrounding the delistings isn’t reflected in actual trading activity.
The Bottom Line
While Tether is facing regulatory hurdles in Europe, at least one prominent analyst believes the impact on the stablecoin’s reserves is minimal. Whether this holds true in the long run remains to be seen.
