Russian Citizens Find Refuge in Tether Amid Wagner Revolt

Russian Citizens Find Refuge in Tether Amid Wagner Revolt

Russian citizens sought solace in the world of cryptocurrency, particularly tether (USDT), during the recent brief revolt by the Wagner mercenary group. Market data reveals a significant surge in the trading volume of the USD-pegged stablecoin during the upheaval. 

Amidst Wagner’s Rebellion, Russians Traded Millions of Dollars

The trading volume between the Russian fiat and tether surged to a new high, amounting to nearly USD 15 million or approximately 1.3 billion rubles. This unexpected turn of events highlights the growing inclination of Russians towards stable digital assets during times of turmoil. The blockchain data firm Codata revealed that the trading volume of tether rose dramatically on the day of the Wagner rebellion compared to the previous day. 

The Wall Street Journal reported a jump from USD 4 million to nearly USD 15 million. Yevgeny Prigozhin, the head of Wagner Group, released a series of video and audio messages, declaring his mercenaries' intentions to undertake a "march for justice" against the Russian military leadership, further intensifying the ongoing feud between Moscow's generals and Wagner.

The data for June 24th reflects trading on crypto exchanges that still support Russian currency pairs, despite the Western sanctions imposed following Russia's invasion of Ukraine. Prominent platforms facilitating these trades include Binance, Hitbtc, Cryptonex, and Coinsbit, as noted by Codata and Bloomberg.

While the surge in trading volume does not explicitly indicate that ruble users were purchasing tether, Jamie Sly, the Head of Communications at Ccdata, suggests that it could be attributed to market participants seeking a less volatile asset like USDT in comparison to rubles. This trend was not observed with Bitcoin volumes, indicating a specific preference for tether.

Kaiko, another blockchain data firm, has supported the observations of Codata. Clara Medalie, the Director of Research at Kaiko, emphasized that the volume of ruble-denominated tether trading has reached its highest level since December 2022, underscoring the significance of this shift in Russian investor behavior.

Crypto Safe Haven: Russians Seek Stability in Tether During Unrest 

Cryptocurrencies and stablecoins have frequently served as safe havens for the citizens of countries during political and economic turmoil. Earlier in June, a report highlighted the high demand for tether in Turkey amidst record inflation of the Turkish lira.

Similarly, during the Russian invasion of Ukraine last year, major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), along with USDT, traded at premiums against the Ukrainian hryvnia following cash withdrawal restrictions imposed by the country's central bank.

What is your take on cryptocurrencies and stablecoins providing a safe haven in times of crisis? Please share your thoughts on the subject in the comments section below.