At a time when Donald Trump promised to make America the crypto head, Europe followed a different path with the Tether Ban. Tether (USDT) is the biggest stablecoin, and it is considered ideal for crypto transactions due to its value being pegged to the dollar. However, the same stablecoin could possibly trigger a crypto market crash. Will Tether Ban Result In Crypto Market Crash? Tether’s failure to adhere to Europe’s Markets in Crypto-Assets (MiCA) regulations is putting the stablecoin in major trouble. According to MiCA standards, stablecoins like Tether require an e-money license to trade on crypto exchanges. However, USDT missed its timeline, making it prone to the Tether Ban in Europe, resulting in its delisting from many crypto exchanges on December 30, 2024. This Tether news could impact the crypto market for the worse due to this digital assets position in the market. It is the third biggest crypto after Bitcoin and Ethereum and has a market capitalization of $139.28 Billion. Additionally, Tether is the most widely held asset which will be heavily impacted by this step. Notably, this delisting could create major liquidity issues, which could create crypto crash-like situations, especially with the investor’s sentiments already moving away from greed. This delisting will also impact the crypto’s USDT pair trades, crypto transactions, and crypto trade fees. Eventually, this could bring a liquidity drought and a crypto market crash. Most importantly, this will reduce its market dominance, which is slowly rebounding after hitting March support. However, the reduction could help in the Bitcoin price rally as there’s a negative correlation between the two. Tether Is Like A Ticking Bomb Besides the Tether news of the ban, financial analyst, Jason brought everyone’s attention to minting hold of the Tether. According to his recent X post, Jason has revealed the fact that Tether has not minted anything for over two weeks. More importantly, he has called the Tether the glue to the crypto market but also a ticking bomb that is going to explode with the Tether bans and exchange delisting. Interestingly, this is nothing new for the Tether, as it still dominates the market despite its ban in multiple jurisdictions, but criticism follows it. Justin Bons called Tether a $118B scam , whereas Jason Calcanis, a popular VC, called it the standard for the darkest transaction. He even questioned its functioning, as it has not passed any major firm’s audit. However, in contrast, the Tether CEO showed enthusiasm despite the crypto drama, posting, “Tether Fud = Rocket sticker.” Moreover, in Jacob’s Tickling Bomb post, he shared his insights as: – Jason has either the understanding of the world of a donkey trying to use a microwave to warm up some soup or just jealous that Tether is not owned by his buddies. What Tether Ban Means For Crypto Investors? The massive impact of the Tether Ban will be visible to European investors, which will be left out of the features of the biggest stablecoin of the crypto market. Moreover, the crypto exchanges could also face challenges and liquidity issues with this step. However, the rest of the world will see an impact, where a crypto market crash-like situation could arise with the delisting of USDT on December 30. Amid this Tether news, critics have also presented their views on the stablecoin, questioning its lack of audits and calling it a $118B scam. However, the Tether CEO has still shown enthusiasm, calling all the FUD the bullish signal for their token. The post Will Europe’s Tether Ban Trigger Crypto Market Crash? appeared first on CoinGape .
