Demand For Crypto Rises 300% In Russia During Wagner Revolt30. June 2023
• Russians reportedly exchanged their rubles for crypto during the short-lived uprising of the Wagner Group and its leader, Yevgeny Prigozhin.
• Trading for ruble-denominated Tether rose by 300% to around $15 million on June 24th as the mercenary fighters were heading towards Moscow.
• The largest platforms for ruble transactions in June include Binance, Cryptonex, HitBTC and Coinsbit.
Demand For One Crypto Asset Tripled In Russia During Short-Lived Wagner Revolt
The short-lived uprising of the Wagner Group and its leader, Yevgeny Prigozhin has sparked more interest in a certain crypto asset amongst Russians. According to blockchain data firm CCData, trading for ruble-denominated Tether (USDT) rose by 300% to around $15 million on June 24th – when the mercenary fighters were heading towards Russia’s capital, Moscow.
Why Is Demand For USDT Surging?
As Bitcoin (BTC) is touted as a digital gold for storing cash during war or disaster, market participants opted to hold less volatile assets instead – leading to an uptick in trading volume for ruble-denominated Tether. CCData communications manager Jamie Sly also notes that most exchanges have delisted trading pairs in rubles due to financial sanctions imposed against Russia for its illegal invasion of Ukraine.
Which Platforms Are Supporting Ruble Transactions?
The report says that the largest platforms providing support for Russian currency are Binance, Cryptonex, HitBTC and Coinsbit.
What Is The Wagner Group?
The Wagner Group is a Russian private military company that operates as mercenaries abroad in places such as Syria and Ukraine and provides security services domestically within Russia. It was founded by Yevgeny Prigozhin – who has been sanctioned by both the US government and European Union over his involvement with interference in foreign elections.
Although Bitcoin may be seen as a safe haven asset during times of crisis or conflict, this article highlights how demand can surge unexpectedly even for other crypto assets like Stablecoins such as Tether (USDT). It also shows how economic sanctions can affect local markets depending on their geographical location.