Peter Brandt warns against Tether’s USDT saying that “Tether is an accident waiting to happen” as he posted on his Twitter profile in a response to another post about the market cap of the coin and the total crypto industry’s market cap with the overall digital asset volume. We are reading more about it in the latest Tether news today.
He added that Tether is in the same class as national currencies:
“Tether is just another fiat currency.”
It’s still unclear whether or not Brandt feels like the asset’s riskiness lies in the fiat currency status or in its checkered past as a stablecoin. Tether has always been controversial so as Peter Brandt warns against it, we can somehow understand. Tether suffered the brunt of many negative comments and claims since it was created. Many claimed that the Tether company doesn’t have sufficient US dollar backing to justify the peg to the $1. The company also faced a lot of lawsuits and regulatory inquiries over the years but it still continues to thrive, holding a market cap bigger than $7 billion.
Also as recently reported, The record BTC and UST inflows pushed the market cap nearly half a billion dollars up to get more traffic and the market cap of Tether broke past the $11 billion levels as the demand for stable coins is up for both hedge for volatility and crypto on-ramp. As a burgeoning crypto custodian industry, it will only boost the demand for stablecoins as Binance reported, saying they are a favorite of institutional investors.
According to a report, more than 800 million new USDT was issued within two weeks of the March crash. Just as a comparison, 740 million USDT were issued from January 1st to March 11th. According to the data from Crypto Compare, the traders purchased 21 million bTC with USDT during the March crash which means it reached 73% of total BTC traded into fiat. Also quite recently, Tether is considered the most valuable stablecoin by market capitalization and fourth-biggest crypto by market value as it has been experiencing high volatility in the market recently.
The latest development is Tether whales started moving again over 300 million USDT in one day in more than 25 transactions as can be seen on Whale Alert. The data from Coinmarketcap shows that Tether is now ranked at 4th most valuable cryptocurrency.
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