Tether (USDT): Are Good Days Coming?
Tether (USDT): the one-dollar cryptocurrency, was created to facilitate the transfer of the U.S national currency. The asset is issued on Bitcoin’s blockchain through the Omni Layer protocol.
Tether was designed to minimize market volatility and over the past months, Tether has maintained its promise of one U.S Dollar for each USDT token.
Current Status of Tether in the Market
At press time, Tether is currently ranked at 17 in the cryptocurrency ranking with a market cap of $2,221,020,810 (USD). For the past 30 days, USDT has managed a trading value above $1 (Daily trading highs). Tether boasts about the largest 24-hours trading value; $1,988,320,000 (USD).
June 22, 2017, was the last time the trading high of USDT fell below $1.00 apiece. Price stability is one key factor that has improved Tether as a token for constant voluminous trade.
The problem with Tether
Transparency has always been the pillar of the manifesto of decentralized digital assets. This forms the major problem with operating the USDT. Time and time again, Twitter users, Redditors, and Crypto enthusiasts have come up to challenge the transparency of Tether.
Critics have always asked for literal receipts showing that for every 1 USDT token, 1 USD existed in the Tether reserve holds. Another critical part is that there has been no company proven to be behind Tether (USDT).
It, however, remains a solid cryptocurrency but lack of updates from the Tether team and the lack of transparency attributed with the digital asset makes it more difficult for crypto enthusiasts to venture into an investment.
With critics springing up every day, suspicion is rising over Tether like never before. As has been covered by crypto-reporters, a Tether failure could spark a huge market failure. Tether acts a stabilizer of cryptocurrencies, so its collapse could topple some exchange platforms, which would affect other cryptocurrencies.
Tether (USDT) is expected to retain its $1 trading value for a long time. However, the looming uncertainty over the asset could result in decreased trading, sell and holding of the token. If Tether survives the backlash it is facing now, there is potential for the token grows into more exchange in the future.
This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your own research and/or consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.