In the past twenty-four hours, the Binance cryptocurrency platform encountered significant turbulence as the exchange rate between the naira and the popular stablecoin, Tether (USDT), experienced a drastic plummet to approximately N1900/USDT, followed by a subsequent rise to N1354.3. However, as of 7 am on Thursday, February 22, the naira was trading between N1680-N1710/$1 USDT.
This volatility occurred amidst reports of a crackdown on cryptocurrency trading, which some authorities perceive as a contributing factor to the swift depreciation of the naira. The sharp fluctuations observed highlight the unpredictable nature of cryptocurrency markets, particularly within Nigeria’s economic context.
While the exact cause of this volatility remains unclear, some attribute it to broader regulatory measures aimed at curbing cryptocurrency trading, with authorities citing concerns over its impact on the stability of the naira.
Source: Parrot Nigeria News