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New! Bitcoin Price Prediction: $3,600 BTC Price Is a Very Likely Scenario. When to Invest in Bitcoin (BTC)?
New! Bitcoin Price Prediction: $3,600 BTC Price Is a Very Likely Scenario. When to Invest in Bitcoin (BTC)?

Tether News - Tron Partners with Tether to Make New USDT Tokens, Both Platforms Expect to Benefit

  • Yuri Molchan
    📰 News

    💰💰💰The two crypto industry giants intend to present new Tron-based USDT tokens in Q2 2019

Tron Partners with Tether to Make New USDT Tokens, Both Platforms Expect to Benefit
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Contents

The new USDT tokens based on the TRC20 token standard will be able to interact with Tron-powered protocols and dApps. This will enable users to transfer crypto backed by fiat across the Tron ecosystem and convert them.

Tron and Tether joining efforts

Tron has been showing significant progress since summer 2018, when it launched its mainnet, releasing new products such as the Tron Virtual Machine, and attracting new members into its community, including both regular users and dApp developers.

Tether came into existence in the fall of 2014, launching a USDT stablecoin pegged to the US dollar. Despite the fact that since spring 2018 other stablecoins have also been created, USDT is still the leader on this market.

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What’s in it for them both?

By allowing Tether to join its platform, Tron intends to add great improvements to its ecosystem of dApps, as well as to its overall system of value storage. Besides, this way the liquidity of Tron’s decentralized exchange will increase.

Apart from that, thanks to this partnership, more corporate partners and institutional investors will be able to access Tron.

This cooperation seems to be beneficial for both platforms, allowing them to improve the decentralized financial system.

They intend to create Tron-based USDT by the start of Q2.

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Tether News - Three Major Problems Stablecoins Can Impose on Market

  • Yuri Molchan
    ⭐ Features

    It is not all so cheerful about fixed-price crypto coins

Three Major Problems Stablecoins Can Impose on Market
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Contents

As of late, the Coinbase announced the listing of USDC (USD Coin) emitted by the Circle startup. Many more similar asset-pegged tokens are emerging. The most popular projects so far, such as TrueUSD (TUSD) and Gemini Dollar (GUSD), are gradually minting more coins and broadening their reach. Meanwhile, the former leader Tether (USDT) is being promptly taken out of the market.

Below are the major troubles that stablecoins may cause for their investors.

Centralized grip

Regardless of what coins are pegged to, they are emitted by one central entity. Everything about stablecoins has been planned in advance, even the code and market behavior. So, the emitter may decide to increase the supply, for one thing.

There is no limit to that, unlike with any other decentralized crypto, such as Bitcoin or Ether, where the supply is limited by the code to imitate money that cannot be harmed by inflation. With stablecoins, however, the supply can be endless.

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Besides, an asset-pegged coin is also a financial instrument which can be used indirectly or deliberately to manipulate the market.

Control over holders’ accounts

When you deal with Bitcoin or Litecoin, for instance, nobody is able to seize your coins unless through a cyber attack. However, the protocols of some coins enable their makers to freeze wallets and the entire balances along the way.

Paxos Coin can do that, and so can USDC. Actually, all stablecoins based on the Ethereum ERC20 standard can be controlled. The same thing can happen with XRP, even though it is not a stablecoin.

This time centralized control can harm each user personally. At present, when any crypto can be considered dangerous and illegal or used for criminal purposes, this is certainly a real possibility to get your balance frozen.

👉MUST READ New Coinbase’s Stablecoin (USDC) Watches Accounts, Can Freeze Tokens at Will

Attacks against the USD peg

Some of the stablecoins are protected by nothing but their algorithm. This makes them vulnerable to what is similar to a Forex trading attack on a fiat currency. When experts in their craft attack the USD peg of a stablecoin, they can get a certain profit.

If we think of the current withdrawal of USDT from the market, that thing happened out of the blue despite whole months of skepticism before it. Anyway, there can be deliberate attacks against some stablecoins to bring on fluctuation to earn profits.

Numerous Forex experts believe that stablecoins are rather vulnerable to exchange rate attacks and these coins’ teams are not even aware of the fact.

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