A lot of people have been skeptical about investments in Tether since it has lost its peg to the dollar. The currency has shown it’s power when it caused BTC to spike once it lost the peg to USD, as people reverted back to BTC and a huge sell out event was observed in the market. Tether was being sold at $0.8, horribly below the dollar. As of press time, Tether has shown improvements in the valuation, once again showing ties to the dollar. It is being traded at $0.975 at press time and shows positive momentum which would probably make it able to reach back to its stable position.
Although the valuation has gained power once again but the 8th ranked currency has lost the interest of people and made them skeptical about investing in it. People are thinking that the spike it gave bitcoin is a sign of manipulation which is something that needs to be eliminated from crypto, hence, moving to other stablecoins is a better option as USDT is making the space more centralized than decentralized.
Eric Thies, the managing partner at UTR equities also gave his take on the USDT, BTC incident saying that Tether would screw the coin market at some point as it is making the space more centralized. Adding to this, he further explained his views talking to BlockPublisher in an email interview saying,
USDT is going to screw the market at some point. The event last week (Bitfinex USDT spike) is just an example of what kind of power Tether has on the market. Whether or not they have the cash to back it is one thing, but conceptually putting that much power into the hands of one centralized entity is keeping the market far from decentralized.
Following these facts, many other analysts from the crypto world also have shown negative behaviors to Tether. Mati Greenspan, the senior market analyst at eToro also shared his views with BlockPublisher agreeing to the fact that it is probably the time to shift to better stable coins than Tether. Similarly, the crypto enthusiast David Gokhshtein also showed his intent talking to BlockPublisher stating,
It’s (Tether’s) just not trusted by half the people in the industry. That’s the problem. I don’t believe other stablecoins will face this in the future. Eventually we’re going to have to get away from it. It’ll hurt in the short-term, but will benefit the space in the long-run.