The Russian invasion, one way for the Ukrainian people to protect their assets is to convert the fiat currency in their hands into other assets. Therefore, the cryptocurrency has become one of the channels to quickly transfer assets. The local exchange even saw a strange rise in the dollar stablecoin of more than 5%. The price of Bitcoin also produces three different currency values.
When the country is threatened by turmoil, the common safe haven assets are gold and US dollars, but in the chaos, it is not easy to buy these two things. In contrast, cryptocurrency operations are easier.
According to data from Ukraine’s domestic cryptocurrency exchange, after Russia’s official invasion of Ukraine, the price of the U.S. dollar stablecoin Tether (USDT) fluctuated violently. The exchange rate of Tether to Ukrainian fiat currency (UAH) came to 1:32.3, which should have been Tether, which is pegged at 1:1 with the US dollar, also rose to US$1.1 at one point.
This is because USDT is not in unlimited supply, especially in smaller exchanges, the amount of USDT that can be exchanged is limited, so there is a strange phenomenon of currency price decoupling.
Compared with Tether, another U.S. dollar stable currency USDC has a worse circulation rate in Ukraine and a smaller supply, so it is also 1:1 anchored to the U.S. dollar, but the currency value of USDC in the Ukrainian exchange is one dollar lower than USDT. This creates a strange phenomenon. On the Ukrainian exchange Kuna, the price of a Bitcoin is 37715 USDT, or 39248 USDC, which is also equal to 40819 US dollars.
At this moment, on exchanges in Taiwan and the United States, the price of Bitcoin is 38,535 USDT.
This is an extremely bad phenomenon for exchanges. Millions of dollars are waiting to buy cryptocurrencies. The question is who wants to exchange their cryptocurrency for Ukrainian fiat?