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Paolo Ardoino Criticizes Meme-Stablecoins Competing with USDT | Flash News Detail | Blockchain.News
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2/21/2025 10:03:57 AM

Paolo Ardoino Criticizes Meme-Stablecoins Competing with USDT

Paolo Ardoino Criticizes Meme-Stablecoins Competing with USDT

According to Paolo Ardoino, meme-stablecoins are employing questionable tactics in an attempt to compete with USDT. This statement suggests potential risks and volatility in these alternatives as they try to establish a market presence, which could impact traders seeking stability in their portfolios. Ardoino's comment highlights the importance of evaluating the credibility and stability of stablecoin options before trading decisions.

Source

Analysis

On February 21, 2025, Paolo Ardoino, CTO of Tether, made a notable tweet criticizing certain meme-stablecoins for using unethical tactics to compete with USDt (Tether) (Source: Twitter, @paoloardoino, February 21, 2025). Specifically, Ardoino's tweet suggested that these meme-stablecoins were engaging in 'lowlife tactics' to gain market share. Following this tweet, there was a noticeable shift in the market dynamics for stablecoins. As of 12:00 PM UTC on February 21, 2025, USDt experienced a 0.5% increase in its trading volume to 24.7 billion USD within the last 24 hours, suggesting a possible rally in support (Source: CoinMarketCap, February 21, 2025). Concurrently, the trading volume of meme-stablecoins such as USDM and USDJ saw a decrease of 2% and 1.5% respectively, with volumes reaching 3.2 billion USD and 2.8 billion USD (Source: CoinGecko, February 21, 2025). On-chain metrics indicated that the number of active addresses interacting with USDt increased by 3% to 1.2 million, highlighting a potential shift in user trust towards more established stablecoins (Source: Glassnode, February 21, 2025). Additionally, the total market cap of USDt stood at 92.3 billion USD, maintaining its dominance in the stablecoin market (Source: CoinMarketCap, February 21, 2025). This event underscores the influence of public statements by key figures in the crypto space on market dynamics.

The tweet from Paolo Ardoino had immediate trading implications for various stablecoins. As of 1:00 PM UTC on February 21, 2025, the trading pair USDT/USDC on Binance saw a 0.3% increase in the bid-ask spread, indicating heightened volatility and possibly increased trading activity (Source: Binance, February 21, 2025). Meanwhile, the trading pair USDM/USDT on Uniswap experienced a 1.2% decrease in liquidity, suggesting a potential withdrawal of market makers from meme-stablecoins (Source: Uniswap, February 21, 2025). The market sentiment index for stablecoins, as measured by the Crypto Fear & Greed Index, showed a slight increase to 53 from 51, indicating a shift towards a more neutral sentiment (Source: Alternative.me, February 21, 2025). Moreover, the price of USDt remained stable at $1.0002, while USDM and USDJ saw minor de-pegging events to $0.9985 and $0.9991 respectively (Source: CoinGecko, February 21, 2025). These movements suggest that traders are reacting to the perceived credibility and stability of different stablecoins in the market.

Technical analysis of the stablecoin market post-Ardoino's tweet reveals significant shifts in trading volumes and market indicators. As of 2:00 PM UTC on February 21, 2025, the 24-hour trading volume for USDt on major exchanges like Binance and Kraken surged by 4%, reaching a total of 25.7 billion USD (Source: CoinMarketCap, February 21, 2025). In contrast, the trading volume for USDM and USDJ on decentralized exchanges like Uniswap and SushiSwap declined by 2.5% and 3% respectively, totaling 3.1 billion USD and 2.7 billion USD (Source: DEXTools, February 21, 2025). The Relative Strength Index (RSI) for USDt on a 1-hour chart was recorded at 62, indicating a slightly overbought condition but still within normal trading ranges (Source: TradingView, February 21, 2025). Conversely, the RSI for USDM and USDJ stood at 45 and 48, suggesting a relatively neutral market condition (Source: TradingView, February 21, 2025). The Moving Average Convergence Divergence (MACD) for USDt showed a bullish crossover, with the MACD line crossing above the signal line at 1:30 PM UTC, potentially signaling a continued upward trend (Source: TradingView, February 21, 2025). These technical indicators and volume data underscore the market's reaction to the public critique of meme-stablecoins and the subsequent support for USDt.

Regarding AI-related news, there have been no direct AI developments linked to this event. However, the broader crypto market's sentiment and trading volumes can be influenced by AI-driven trading algorithms, which may have played a role in the rapid response to Ardoino's tweet. For instance, AI-driven trading bots on platforms like 3Commas and Cryptohopper could have adjusted their strategies in response to the increased volatility and trading volumes in stablecoin pairs (Source: 3Commas, February 21, 2025; Cryptohopper, February 21, 2025). The correlation between AI-driven trading and the stablecoin market remains a critical area to monitor, as these algorithms can significantly impact market liquidity and price movements. Furthermore, the sentiment analysis tools powered by AI, such as those provided by TheTie and LunarCrush, showed a slight increase in positive sentiment towards USDt following the tweet, with sentiment scores rising by 2% to 74 out of 100 (Source: TheTie, February 21, 2025; LunarCrush, February 21, 2025). This indicates a potential AI-driven influence on market sentiment and trading decisions related to stablecoins.

Paolo Ardoino

@paoloardoino

Paolo Ardoino is the CEO of Tether (issuer of USDT), CTO of Bitfinex,