Featured, International

More Cryptocurrency Exchanges Introduce Rival Stablecoins As Tether Supply Shrinks By $500 USDT

Recently the stablecoin account took a new rotation as Tether Limited, the company responsible for making and allocating the USD-pegged ‘stablecoin’ Tether (USDT) $0.98715 -0.25%, removed 500 million USDT from circulation and destroyed them. It is prominent, therefore, that other cryptocurrency exchanges has planned to move away from delivering tether trading pairs and accept a rival stablecoin instead. Given the high number of stablecoins that have lately launched or are set to launch soon, the rivalry Tether faces are likely to increase.

Tether (USDT), the largest stablecoin to date, seems to be in a terminal decline following intense scrutiny this year over dubious accounting practices. USDT is an extensively tradable stablecoin created by Tether.

Tether has been continuously disapproved for its failure to show that the reserve has sufficient US dollar to back its digital currency on a one-to-one ratio, which it assures for its dollar-pegged cryptocurrency exchange. In the month of October, Tether had a total market cap of $2.8 billion and over the course of the month, the stablecoin dropped below $2 billion as new regulated stablecoins are launching nearly everyday.

Currently, it is believed that the gap of price established between USD and Tether has become a huge problem, as stated in Techcrunch the reason is that in the old-style markets, one would anticipate that big players and market makers might be exploiting on that chance and concluding the spread.

As stablecoin is a new showground in the cryptocurrency world, one can maybe expect regulatory surprises. After all, it certainly is a positive sign that other cryptocurrency exchanges are now being regulated and accepted legally. There are a few early pointers of who is going ahead, even though numerous stablecoin projects are still creating their products or are in the process of launching. As per Bitcoinist, Tether has currently reduced to 800 million USDT from the flow and the Tether treasury contains roughly 467 million USDT.

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]

As a professional blogger and news writer, Akshada presents unique pieces that are logical, well-structured and appealing to the audience.

Leave a Comment

Your email address will not be published. Required fields are marked *