Tether Archives - 2100NEWS

UrbanDecember 11, 2018

6min777

Tether (USDT) has recently found itself among the top five cryptocurrency assets by market cap – despite its own declining capitalization – due in part to the dramatic demise of other top currencies such as Bitcoin Cash and EOS.

That’s particularly notable since Tether has shed around $700 million in assets since September – which in USDT means actual units of issuance, not just changing crypto tides. That much has actually exited in this span of time – at the time being $2.5 billion and today being around $1.8 billion. This is an incredible loss, and if Tether’s network were a company, investors would be running for the hills. But instead, it’s more like customers are heading for the hills.

tether cryptocurrency market cap crypto
Source: CoinMarketCap

One could speculate on why Tether is retaining so much, rather than why it’s lost so much. One possible contributing factor is the high cost of exiting Tether directly as opposed to other stablecoins. Paxos Standard, USD Coin, and Gemini Dollar all have much friendlier exit terms than Tether, which charges a minimum in the several thousands of dollars to convert back to US dollar.

This time 90 days ago, Litecoin had more than double its present market cap, which stood at more than $3.4 billion. Today it’s $400 million behind Tether. EOS was also around 200% of its present state, then being at over $4 billion, but today being just over $2 billion and downward pressure possibly pushing it further. Tokenized platforms rely on demand from their associated tokens, and EOS will have to see the launch of new projects or renewed interest in old ones to recover its past glory.

But there’s no sadder story in this range than Bitcoin Cash, which has lost roughly 75% of its former glory. 90 days ago it had a market capitalization of over $8 billion whereas today it’s actually behind Tether by more than $100 million. It wouldn’t be fair not to note here that it’s much easier for Bitcoin Cash to add capitalization than it would be for Tether. There’s fewer gates to pass through, so if either is to recover in a quick and dramatic fashion, BCH would probably go first.

But will Tether retain its hold on the stablecoin sphere? Paxos Standard and USDC are rapidly gaining over the past 30 days, PAX more so than USDC, although USDC retains a higher overall capitalization by about $22 million. Combined they have a market capitalization of around $372 million.

If you add in TrueUSD‘s $210 million and Gemini Dollar’s $90 million, you’re pushing toward $700 million between them. Then, if you add in Dai, you’re close to three-quarters of one billion dollars.

So all told, the competitor stablecoins have a ways to go. But if trends continue, with newer entrants gaining and Tether losing, the day may not be terribly far off when Tether is the outlier and one of the later pegged coins is king.


Luka GlogoskiMarch 29, 2018

3min949

Tether continues top stir up controversy as it cancels its audit and issues $300 million more worth of tethers.


 

The thing with Tether is that it’s supposed to be backed up by US dollars in a one-to-one ratio. But no one has actually been able to confirm that those dollars in fact exist in their bank account since there has never been a successful external audit completed.

Additionally timing of Tether issuance has had a suspicious effect on Bitcoin’s price. It always seemed to coincide with Bitcoin’s price increase, usually at times when Bitcoin was falling in value, leading some to suspect marker manipulation.

Funny enough this has happened again last week as the price of Bitcoin rebounded by 6% shortly following the issuance of $300 million worth of Tether tokens.

Anonymous blogger Bitfinex’ed, who is no fan of Tether – or associated exchange Bitfinex –  to put it mildly, posted on Twitter at the time that the release of such a large amount of Tether once again caused an increase in Bitcoin’s price.

https://twitter.com/Bitfinexed/status/976179019191410688

Pantera Capital chief investment officer Joey Krug expressed concerns back in January 2018, that these rallies had led to Bitcoin’s price rise to an all-time high of $20,000 in December of 2017.

“This became more and more concerning, because every time the markets went down, you have seen the same thing happen. It could mean that a lot of the rally over December and January might not have been real.”

Even the creator of Litecoin, Mr SatoshiLite himself, expressed concerns around the matter all the way back at the end of November 2017.

Still No Audit

Despite all this criticism and many promises, Tether have still not completed an external audit of their accounts, which would easily dispel their critics’ claims of financial impropriety.

The reasons given by Tether for not completing their audits have been shaky to say the least. Since 15th September of 2017, when their accounts were last checked and confirmed to match the issued tokens at $442 million, there has been no further confirmation of their fiat reserves.

In theory Bitfinex exchange who issue Tether, make enough profit through trading and lending fees, to have enough cash reserves to cover the issued Tether tokens, however until we see a full independent audit completed, doubt will remain. And doubt is the last thing we need in these volatile crypto markets, so hopefully Tether will provide a full and transparent audit soon.



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