CZ shoots down false rumor but Tether still drops 5 percent

16 Oct, 2018
by Matthew Kim
News
CZ shoots down false rumor but Tether still drops 5 percent

In the age of social media, word travels fast, regardless of the truth; in the cryptocurrency world, it travels at twice the speed. Fake news of Tether’s delisting from Binance circled the cryptocurrency sphere today, causing quite the stir. However, CEO of Binance CZ has quickly rejected the validity of the news.

News on Tether (USDT) started today when KuCoin, another popular cryptocurrency exchange, announced that the exchange will be temporarily suspending USDT deposits and USDT for a USDT wallet upgrade. System maintenances are common, and it normally would not cause any commotion. KuCoin specifically stated that it will “re-open deposits and withdrawals for USDT” when the update has been resolved.

Yet soon after the KuCoin announcement, rumors of Tether’s delisting from Binance began circulating and caused panic. Cryptocurrency traders, influencers, enthusiasts received a screenshot that was claimed to be an official announcement from Binance. The supposed announcement called Tether a “Tether big scam”, and said that Binance will “delist and cease trading on all trading pairs” at 10 AM (UTC) on October 16th.

USDT holders panicked and sold, expecting the currency to drop despite its “stablecoin” nature or possibly even fail. Thus, USDT had a self-fulfilling drop from $0.985 to 0.937 within the span of 2 hours.

Fortunately, the validity of the rumor and “announcement” was quickly questioned and the community did its best to dispel the fear. The announcement had grammatical errors and uncharacteristic of Binance. There was even pixelation to indicate a poor Photoshop job.  

Finally, CZ also publicly dispelled the rumor.

Yet the damage was done, and Tether is still recovering from the ill-informed sell-off. At the time of writing, Tether sits at $0.979.

Read more about: Binance

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