Senior Cryptocurrency Analyst, Steno Research

Mads Eberhardt

Senior Cryptocurrency Analyst

Macro and Geopolitical Research House

Steno Research

Steno Research is a new macro and geopolitical research house. We are based out of Copenhagen, Denmark, but have an international team and a strong network of sources and partners around the world. The team is lead by Andreas Steno, previous global head of strategy at Nordea Bank, and Mikkel Rosenvold, former chief consultant in the Danish Ministry of Finance.

Crypto

<ul><li>Recently, we have discussed the significant positive shift in the U.S. regulatory environment for crypto.</li><li>You might be weary of regulatory discussions, but we need to address the European Union’s Markets in Crypto-Assets Regulation (MiCA) framework.</li><li>This framework is set to take full effect on December 30, 2024.</li></ul>

Recently, we have discussed the significant positive shift in the U.S. regulatory environment for crypto.You might be weary of regulatory discussions, but we need to address the European Union’s Markets in Crypto-Assets Regulation (MiCA) framework.This framework is set to take full effect on December 30, 2024.

Crypto Moves #30 – The European Union’s MiCA Removes Tether from the Market

Credit/Macro/Crypto Analyst, Former Credit/MA PM

Rose Choy

<ul>
<li>USDT or Tether, the largest stablecoin, has been experiencing small discounts to peg at times (larger discount during market stress) but those looking for a blow up will be disappointed.</li>
<li>Tether's redemption dynamics are the main cause of the discount. Recent withdrawals in Tether and drop in market capitalization are the result of liquidations in the crypto space.</li>
<li>While Tether's reserves are not transparent, the Company is not regulated and is under no obligation to disclose their balance sheet/ reserves in full. </li>
</ul>


USDT or Tether, the largest stablecoin, has been experiencing small discounts to peg at times (larger discount during market stress) but those looking for a blow up will be disappointed.
Tether's redemption dynamics are the main cause of the discount. Recent withdrawals in Tether and drop in market capitalization are the result of liquidations in the crypto space.
While Tether's reserves are not transparent, the Company is not regulated and is under no obligation to disclose their balance sheet/ reserves in full. 


Data-Driven Analysis of Cryptocurrency Markets, Kaiko

Kaiko

Data-Driven Analysis of Cryptocurrency Markets

Kaiko is the leading cryptocurrency market data provider for institutional investors and enterprises. We empower market participants with accurate, transparent, and actionable financial data to be leveraged for a range of market activities. Kaiko’s mission is to be the foundation of the new digital finance economy by serving as a single source for market information. Our mission is premised on the idea that high-quality data drives market efficiency and greater transparency throughout the industry. For each of our enterprise clients, we build custom data plans designed for a range of use cases.

<ul><li>The Curve 3pool – long one of the most important sources of liquidity for DAI, USDC, and USDT – has continued to bleed this summer, shrinking by $175mn.</li><li>This outflow has been primarily led by USDC; users have withdrawn $125mn of Circle’s stablecoin.</li><li>By this metric, USDT has remained roughly even while $60mn DAI has been removed, $25mn of which came in just three transactions on July 31.</li></ul>

The Curve 3pool – long one of the most important sources of liquidity for DAI, USDC, and USDT – has continued to bleed this summer, shrinking by $175mn.This outflow has been primarily led by USDC; users have withdrawn $125mn of Circle’s stablecoin.By this metric, USDT has remained roughly even while $60mn DAI has been removed, $25mn of which came in just three transactions on July 31.

<ul><li>Stablecoins are systemically important in cryptocurrency markets, so even the slightest depeg can cause mass market contagion.</li><li>As such, it is concerning that stablecoins have been particularly volatile since the start of 2023</li><li>TUSD wobbled amid Prime Trust's closure, USDT depegged due to mysterious selling activity, BUSD has been increasingly volatile since Paxos halted issuance, and USDC crashed during the March banking crisis.</li></ul>

Stablecoins are systemically important in cryptocurrency markets, so even the slightest depeg can cause mass market contagion.As such, it is concerning that stablecoins have been particularly volatile since the start of 2023TUSD wobbled amid Prime Trust's closure, USDT depegged due to mysterious selling activity, BUSD has been increasingly volatile since Paxos halted issuance, and USDC crashed during the March banking crisis.

<ul><li>It should come as no surprise that 2022 was rife with contagion in the crypto industry.</li><li>Numerous crypto companies went bankrupt, many due to fraud.</li><li>Now, the majority of these bankruptcy cases are nearing their conclusion, and some have already been completed, allowing creditors – primarily clients with assets stuck in these firms – to receive the remaining assets.</li></ul>

It should come as no surprise that 2022 was rife with contagion in the crypto industry.Numerous crypto companies went bankrupt, many due to fraud.Now, the majority of these bankruptcy cases are nearing their conclusion, and some have already been completed, allowing creditors – primarily clients with assets stuck in these firms – to receive the remaining assets.

Crypto Moves #31 – Do Not Fear Mt. Gox Repayments

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Tether (USDT CURNCY)

Crypto Moves #30 – The European Union’s MiCA Removes Tether from the Market

Recently, we have discussed the significant positive shift in the U.S. regulatory environment for crypto. You might be weary of regulatory...

Steno Research

Tether (USDT) - Not the Next Domino

This insight explains why USDT is not the next blow up in crypto and why there could be a small persistent discount to peg, due to redemption...

Rose Choy

Curve 3pool Sees $175m Outflows

The Curve 3pool – long one of the most important sources of liquidity for DAI, USDC, and USDT – has continued to bleed this summer, shrinking by...

Kaiko

The State of Stablecoins

Stablecoins are systemically important in cryptocurrency markets, so even the slightest depeg can cause mass market contagion.

Kaiko

Crypto Moves #31 – Do Not Fear Mt. Gox Repayments

It should come as no surprise that 2022 was rife with contagion in the crypto industry. Numerous crypto companies went bankrupt, many due to...

Steno Research

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