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Tether Implodes, Leaving Market Wide Open For Bitcoin

People are questioning stablecoins after Tether, which is pegged to US Dollar, kept trading at 96 cents on the exchanges.

In the past whole week, Tether revolved around the 98 cents line, never really crossing it once.

This seems like a minor detail in the crypto world but has sparked debates in investor circles that are now questioning stablecoin as a viable investment option.

Few investors have given up on Tether that has caused a mass trigger that has Tether crumbling to 95 cents at one point.

Tether Chart
Source: CoinMarketCap

This opportunity was hooked on by Bitcoin that regained it’s once lost value of $6,800 briefly before stabilising at $6,600. What happens usually that investors keep tether as a safe spot and sometimes trade Tether for other virtual currencies. This time the ‘other’ one was Bitcoin. Bitcoin saw a dramatic uplift that made it cross the stability limit and touched $6,900.

BTC Chart
Source: CoinMarketCap

Although Tether has announced that all the currently circulated Tethers are backed by USD but it has never been confirmed. Tether’s official website has a ‘Transparency‘ section that provides details of Total assets and liabilities in both Dollar and Euros.

Also, Bitfinex exchange has the same chief executive as Tether Limited. This has caused theories to flood market that has something to do with Bitcoin prices.

Bitfinex, in their post on Medium, has rejected the rumors claiming it to be insolvent.

Bitfinex is not insolvent, and a constant stream of Medium articles claiming otherwise is not going to change this. As one of only a very few exchanges operating since 2013, with a small team and low operating costs, we do not entirely understand the arguments that purport to show us to be insolvent without providing any explanation about why.

 

With Bitcoin gaining momentum, all the top 10 virtual currencies trading on Coin Market Cap saw an increase in their prices, which has become a norm now.

Top 10 VC
Source: CoinMarketcap

Tether was, in the past, a go-to choice for trading that showed no reaction to volatility of the crypto market and a great utility stream. Will Tether keep up?

There are alot of other stable coins available in the markets like TrueUSD, Basis, Carbon and Havven. Will people shuffle over to the others?

Sarim Mehmood

An electrical engineer to be. Sarim is a blockchain & crypto enthusiast and an early investor in ETH and Ethereum based projects. Contact the editor at editor.opinions@blockpublisher.com
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