USDT holds dollar peg: USDT has mostly kept its dollar peg since Bloomberg reported Monday that the U.S. Department of Justice is investigating Tether, issuer of the biggest stablecoin, for probable bank fraud. The token, which works as crucial plumbing for the $1.6 trillion crypto market. It traded at $1 for most of its record. However, past scares made it to lose parity with the greenback, but not permanently. In 2018, for example, USDT dropped to as low as 92 cents in the middle of concerns about its collateral and about Bitfinex. The crypto exchange that shares owners and managers with Tether. The reflex to the latest news is mild by comparison.
Altcoin rally:Bitcoin’s price surge at the beginning Monday headed to a rally in so-called altcoins. With aave (AAVE), chainlink (LINK) and bitcoin cash (BCH) notching double-digit percentage gains. Aave, an open-source and non-custodial protocol that performs on the Ethereum blockchain that allows users to lend and borrow a range of crypto assets. It has climbed 18% in the last 24 hours, based on professional annalists data. Chainlink, a decentralized oracle network, was trading at $19.17.It was representing a 14% gain in the last 24 hours. Bitcoin Cash, the blockchain that forked off Bitcoin in 2017, had a rise to 13%.
Uniswap Labs Limits Access to Some Tokens: Uniswap Labs is limiting availability to some tokens. It is including tokenized stocks and derivatives on the protocol interface that it backs up. However, the software development studio mentioned in a blog posting Friday. That news comes days after U.S. regulators’ announcement that they would scrutinize these types of decentralized finance (DeFi) products more and more. Uniswap quoted an “evolving regulatory landscape” in explaining its decision.
Pressure on stablecoins
The strong leap in bitcoin over the weekend happened as shorts covered positions. Hardly 2,000 short positions were liquidated over a two-hour period,. This data was according to data from CryptoQuant. The short-squeeze rally happened in spite of regulatory pressure surrounding stablecoins.