Tether Flash Crashes Across Indian Exchanges

The cryptocurrency market never sleeps and will often provide some form of entertainment. Seeing Tether’s USDT asset crash across Indian exchanges is unusual and creates a tremendous market opportunity for those buying the dip. After that, everything is back to normal, although there are still several happy people. 

Tether Flash Crash Across Indian Trading Platforms

• India is an intricate country regarding cryptocurrency regulation and guidelines.
• While currencies are not officially banned, trading is strongly discouraged and punishable by law.
• Following a new piece of legislation, there is even more regulatory uncertainty.
• That document triggered a flash crash for Tether, the issuer of the USDT stablecoin.
• Although USDT should maintain a value of $1, or 74.3 rupees, it dipped to 60 rupees on WazirX.
• Interestingly, the price peg remained intact on all trading platforms not located in India.
• The price dip triggered opportunistic traders’ market potential to buy the Tether dip.
• Arbitrage opportunities involving the industry’s leading stablecoin do not appear all that often.
• Traders could sell Tether back a few hours later for a near 20% profit with ease.
• The value was restored quickly, though, but incidents like these might happen again.
• It is unclear if this dip results from technical glitches or traders dumping USDT hand over fist. 
• However, the premium at which traders acquire USDT – near the 80 rupees mark – seems to have evaporated completely.
• It is not the first time USDT has crashed across Indian exchanges.
• A similar dip occurred in early 2021 when the peg dropped to 61 rupees following a different piece of crypto legislation.
• Unfortunately, it seems as if this pattern will repeat itself for a while to come.
• India cannot take an official stance on crypto despite numerous government officials wanting to ban it completely.
• Additionally, the Reserve Bank Of India will develop a digital rupee. 

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