As Ukraine's Wealthy Scrambled To Buy Crypto Ahead Of Russian Invasion, Tether Became More Valuable Than Dollar

Ahead of Russia’s attack on Ukraine, many were looking toward cryptocurrencies to park their funds. Yet efforts by Ukranians to obtain stablecoins such as Tether USDT/USD that can be used to buy Bitcoin BTC/USD and Ethereum ETH/USD and other coins proved futile.

What Happened: Michael Chobanian, founder of Kuna, a Ukraine-based cryptocurrency exchange, said that local buyers failed to purchase USDT even with a 4% premium, reported Coindesk.

“There is nothing you can do with the cash right now in here,” said Chobanian, according to the report. 

“We don't trust the government. We don't trust the banking system. We don't trust the local currency.”

Chobanian revealed that he had a pool of wealthy people who wanted to buy USDT, but failed to do so even with a premium. 

“So Tether is more valuable than U.S. dollar,” said Chobanian.

See Also: How To Buy Tether (USDT)

Why It Matters: Chobanian said there were “millions of dollars” waiting to flow into cryptocurrencies but “we can't find people who are willing to do the opposite, sell it,” according to CoinDesk.

The Kuna founder gave Coindesk an interview from his car in a quiet Kyiv before the Russian invasion Wednesday night.

Chobanian said wealthy people along with business people and “crypto guys” have left Ukraine, but many people he knows have sent their families abroad while they are staying back to protect the nation.

On Wednesday night, Ethereum's co-creator, the Russian-born Vitalik Buterin, condemned Russia’s invasion of Ukraine and called it a “crime against the Ukrainian and Russian people.”

“I want to wish everyone security, although I know there will be no security. Glory to Ukraine,” said Buterin. 

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