0
📊‍ Infographics

USDT Tether Holding Strong Despite Loud Controversies


USDT Tether Holding Strong Despite Loud Controversies
Contents

Tether doesn’t seem to be affected by the most recent controversy with its price sitting at $1.00. The seventh biggest cryptocurrency by market capitalization was expected to lose its peg to the US dollar.

👉MUST READ

Max Keiser: Tether Is 74 Percent Backed, FED Is 1 Percent Backed

Max Keiser: Tether Is 74 Percent Backed, FED Is 1 Percent Backed

Tether gets under fire

As reported by U.Today, Tether’s lawyer admitted that only 74 percent of the total USDT circulating supply is backed by fiat or fiat equivalents, which puts the biggest stablecoin issuer in a serious predicament. That news came right after Bitfinex was accused of pulling off an $850 mln Tether cover-up.

Some industry influencers suggested that the whole debacle surrounding Tether could be an elaborate plan to tank the USDT price and buy the token back at a discount. The day the Tether-Bitfinex news took the market by storm, Paxos Standard, another popular stablecoin, saw a great demand, and USDT was the only dollar-pegged cryptocurrency that was trading below the $1.00 mark.

👉MUST READ

Tether Provides Update, Admitting USDT Is Not 100% USD-Backed

Tether Provides Update, Admitting USDT Is Not 100% USD-Backed

Not losing its peg

However, Tether has managed to rebound, and the cryptocurrency remains pegged to USD even though there is an opulence of other stablecoins in the market. While many expected that Tether would lose its peg (like it did in November due to its banking problems), it never happened.

At the time of writing this article, the flagship stablecoin is as stable as ever with its price sitting at $1.00, according to the data provided by CoinMarketCap. With that being said, there is a huge gray cloud of uncertainty hovering over USDT now that a sizeable amount of its supply is not backed by its cash reserves.

Cover image via u.today
Subscribe to the official U.Today Telegram channel. Get news first!

About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

👓 Recommended articles

This site uses cookies for different purposes. Please set your preferences in Cookie Settings and visit our Cookie policy for more information on how and why cookies are used on this site. Click here for cookie policy

Cookie settings