Jamal Al-Farouq During the recent brief upheaval instigated by the Wagner mercenary group, Russian citizens sought financial security in the stablecoin tether. The trading volume of this U.S. dollar-anchored stablecoin experienced a significant surge during this fleeting insurrection, according to market data.
Russians Swap Tether Worth Millions during Turbulent Day Sparked by Wagner
Several Russians reportedly resorted to cryptocurrencies for financial stability when their country was teetering on the edge of civil war a few days back. On the day of the Wagner private military company’s rebellion, the trade volume of tether (USDT) in exchange for Russian fiat escalated to nearly $15 million, equivalent to about 1.3 billion rubles, as per the data from blockchain analytics firm Ccdata.
This volume indicated a considerable increase from $4 million the previous day, as stated by the Wall Street Journal. Concurrently, Yevgeny Prigozhin, the head of Wagner, issued a series of video and audio messages proclaiming his mercenaries’ intent to initiate a “march for justice” against the Russian military leadership. This announcement marked the climax of an enduring feud with Moscow generals over the Ukraine conflict.
The June 24 market data is founded on trades from cryptocurrency exchanges that continue to support pairs with the Russian ruble, notwithstanding Western sanctions following Russia’s invasion. The major platforms include Binance, Hitbtc, Cryptonex, and Coinsbit, as per Ccdata’s report, cited by Bloomberg.
Jamie Sly, the communications head at Ccdata, clarified that a rise in trading volume doesn’t directly signify that ruble users were purchasing tether. However, this surge could be ascribed to “market players seeking a more stable asset like USDT as compared to rubles, since similar patterns were not visible for Bitcoin volumes,” Sly explained.
This data was verified by a representative from blockchain analytics company Kaiko. Clara Medalie, the company’s Research Director, emphasized that the trading volume of ruble-pegged tether is at its peak since December 2022.
It’s not uncommon for individuals from nations suffering from political and economic turmoil to resort to cryptocurrencies amid crises. For instance, demand for tether in Turkey has remained high since May due to record inflation of the Turkish lira, as per a report from earlier in June.
Following Russia’s invasion of Ukraine in late February of the previous year, major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), along with USDT, were traded at premiums against the Ukrainian hryvnia post the central bank’s decision to limit cash withdrawals.
What’s your take on cryptocurrencies and stablecoins serving as financial safe havens in periods of instability? Feel free to share your thoughts on this matter in the comments section below.
Table Of Contents
Frequently Asked Questions (FAQs) about Tether usage during Wagner uprising
Why did Russian citizens turn to Tether during the Wagner uprising?
During the Wagner mercenary group’s brief rebellion, Russian citizens sought financial stability and security amidst the turmoil. Tether, a stablecoin pegged to the U.S. dollar, provided them with a viable alternative to the volatile ruble.
How much did the trading volume of Tether increase during the Wagner uprising?
On the day of the Wagner uprising, the trading volume of Tether (USDT) in exchange for the Russian fiat currency surged to nearly $15 million, or around 1.3 billion rubles. This marked a significant increase from the previous day’s volume of $4 million.
Were Russians buying Tether as a safe haven asset during the Wagner uprising?
While an increase in trading volume doesn’t necessarily indicate that ruble users were buying Tether, the spike in Tether trading could be attributed to market participants seeking a less volatile asset compared to the ruble. The preference for Tether over Bitcoin suggests a potential desire for stability amid the crisis.
What are stablecoins, and how do they provide a safe haven during times of crisis?
Stablecoins are cryptocurrencies designed to maintain a stable value by pegging them to an external asset, such as a fiat currency like the U.S. dollar. During times of crisis, when traditional currencies may experience volatility or devaluation, stablecoins offer individuals a relatively stable and secure alternative for storing value and conducting transactions.
Have cryptocurrencies and stablecoins been used as safe havens in other countries during crises?
Yes, cryptocurrencies and stablecoins have been sought after as safe havens in various countries facing political and economic uncertainties. For example, in countries experiencing high inflation rates or currency devaluation, individuals have turned to stablecoins to preserve their wealth and mitigate the impact of economic instability.
Which cryptocurrency exchanges supported Tether trading with the Russian ruble during the Wagner uprising?
Crypto exchanges such as Binance, Hitbtc, Cryptonex, and Coinsbit were among the major platforms that continued to support Tether trading pairs with the Russian ruble, despite Western sanctions imposed on Russia. These exchanges facilitated the increased trading volume of Tether during the Wagner uprising.
More about Tether usage during Wagner uprising
- Wagner mercenary group
- Tether (USDT)
- Ccdata – Blockchain data firm
- Wall Street Journal
- Bloomberg
- Blockchain analytics firm Kaiko
10 comments
wow, russians turning to tether during wagner revolt, crypto going big! trading volme spike, very interesting!
tether trading booming during wagner uprising, ruble’s got some competition now! stablecoins proving their worth in uncertain times.
tether saves the day in russia! citizens turn to stablecoins during wagner uprising, finding refuge in the crypto world.
whoa, tether trade vol up during wagner mess! crypto providing safety in chaos, love how it helps people in need!
tether’s got russians covered during wagner chaos. crypto to the rescue, bringing stability when everything’s in turmoil.
stablecoins like tether saving the day! russians looking for refuge from rebelion, so they go for crypto, smart move!
russia + tether + rebellion = crypto action! love how stablecoins help in times of crisis, keeping things steady!
russian citizens seeking tether as safe haven during wagner revolt, avoiding ruble volatility. crypto offering peace amidst the storm!
interesting market data! tether trades surge during wagner rebellion, people finding sanctuary in crypto. stablecoins gaining popularity in crises.
fascinating! russians choose tether over bitcoin during the revolt, seeking stability. stablecoins showing their usefulness once again.