Cryptocurrency is never operational without volatility. The digital token is affected by market trends and economic aggregates. But adds to this concern is the practice of speculation at the end of traders and investors.
Similar is the case with Justin Sun’s USSD Stablecoin. A recent tweet by Mile Alfred has raised concerns over the survival of this algorithmic Stablecoin.
There is a massive possibility that Stablecoin would be experiencing the biggest collapse of the decade.
What Is The Exact Situation?
Justin Sun has been the founder and developer behind the launch of USSD stablecoin. The cryptocurrency enjoys a valuation of USD 32,564,258 million.
The initial coin offering of the currency was pegged at around 500 million tokens. About 92% of them have been subscribed, and the remaining 8% have been linked with custodians and market investors. They are currently valued at USD 0.97. Stablecoin has helped build a solid investor base.
However, rumors exist that the tokens have de-pegged and are no longer actively traded. Statistics showcase the trading volume of USD 24,526,852 in the last 72 hours.
This has been the first time that the trading volume for the previous 48 hours has yet to be updated.
Mike Alfred has warned the existing investors against continuing with these tokens in the future. The listed exchanges have not displayed any improvement in market capitalization so far.
Furthermore, Stablecoin has lost an investor value of USD 50,000 million in the recent two weeks. Since the federal reserve rates were announced, the price has tumbled by 17%.
In light of these developments, the currency does not seem to perform well on significant market-based parameters. Hence, one must be careful about investing in these USSD stablecoins. Many market analysts are evaluating the prospects of this currency.
How Did Mike’s Report Change The Scenario?
Mike has been an investor in USSD Stablecoins and is enjoying a shareholding of 4.5%. He recently took to Twitter to apprise the investor community of the red flags worth notifying. He has reiterated that Stablecoin will no longer be stable in the times to come.
There is a huge possibility that the entire investment would collapse, and the blockchain network would be judged defunct.
He has advised most investors to withdraw their holdings at the currency valuations to exit the market at the current price. According to this tweet, the current price of USD 0.97 is the highest possible value for USSD stablecoins.
The financial statements and indices of the company fail to display a promising future in the times to come. The platform is heading towards reporting the biggest crash in the coming weeks.
Why Does Their Opinion Of Mike Matter So Much?
Mike has been one of the most awful and erratic investors who has invested billions in this crypto market. He has been an outstanding investor ever since the inception of the blockchain.
He enjoys a significant chunk of shareholding in most tokens and coins. He is famous for predicting the exact time to exit the market.
His recent post on Justin Sun’s USSD Stablecoin has shaken the interest and trust of millions of investors. They are now doubtful about their holdings and are looking forward to exchanging them for any valuation.
The company has not released any official financial statement in this regard. However, the speculations in the market continue to haunt the existence of USSD stablecoins in the crypto market.
What Is The Overall Situation?
It is worth mentioning that the cryptocurrency needs to perform as per expectations. The year 2023 has yet to open itself on a promising note. There is a possibility that many of the traded tokens would lose their existence on reputed trading platforms.
The value of exchange has also been reduced to a great extent. That is why it is necessary to analyze the functioning of the coins and currencies in the upcoming times so that the base value is not eroded.
USSD Stablecoins are on the verge of extinction. The crypto assets which back up these securities have also diluted their holdings and valuation. The market volatility is yet another reason to give up on this investment.
The inflationary and federal reserve rates are responsible for reducing the ratio of this currency. It will be interesting to witness how this reality will turn itself into reality.
It has to be concluded that the market indices fail to show the market correction as required. The investors are deciding to take out their funds from the market.
This is very evident from the reduced trading volumes in the past week. The future is simply dark for this form of investment in the times to come.
Harry Aston is a technology writer with a Master’s in Computer Science from MIT. He has over 5 years experience simplifying complex tech topics like AI. His writing makes emerging technologies accessible for mainstream readers. Harry aims to educate people on AI’s potential to improve society.