Tether, the top stablecoin, maintained its vice grip on the stablecoin market, while competing fiat-pegged cryptocurrencies are experiencing steady growth. USD Coin [USDC] and TrueUSD [TUSD], the other top stablecoins, have however surged in recent months, owing to the Bitfinex-Tether episode.
According to a recent report by Diar, competing stablecoins have surged in the month of May in terms of spot trading volumes, amassing over $4 billion tokens on the blockchain. The trading volumes of the stablecoins over the past 5 months have already surged ahead of total fiat-pegged volumes in 2019.
In May alone, the Coinbase and Circle-backed stablecoin, USDC, saw a massive 130 percent rise in trading volume, accounting for $3.6 billion, compared to its April sum of $1.6 billion. Launched back in October 2018 during the prolonged crypto-winter, the stablecoin’s trading volume from the first four months of its issuance is still dwarfed in comparison to its April 2019 figure.
Since the beginning of the year alone, the stablecoin grew by 41 percent, stated Diar. Trading volumes reciprocated, recording a 435 percent top-up.
TrueUSD by TrustToken, the audit-friendly stablecoin, saw its volume increase by $1 billion from $2.8 billion in April to $3.8 billion in the current month, beating USDC’s trading volume by $200 million. Diar added,
Interestingly, the USDT-sans-stablecoin surge occurred as Tether experienced its first month-on-month decline in market share for the first time in 6 months. Holding 81.7 percent of the market in March, USDT’s market share declined to 78.9 percent of the total Bitcoin to stablecoin and fiat market.
May looks to paint a different tale for Tether, given the backlash its parent company is facing. Tether Limited also shares management with iFinex, the company that operates Bitfinex, which allegedly used USDT reserves to cover up its $850 million undisclosed losses.
Bitfinex’s CTO responds to speculations of ‘Tether dump’ after treasury mints 150 million USDT
Tether treasury just got itself out of the whole Bitfinex fiasco. However, it is back in the news after it minted 150,000,000 USDT. Tether claims to have backed every USDT with the US Dollar. However, during its feud with the New York Attorney General, it was revealed that only 74% of Tether was backed by cash and short-term securities. A Bloomberg report quoted from the file and stated,
“Tether currently has cash and cash equivalents of about $2.1 billion, “representing approximately 74 percent of the current outstanding tethers.”
Thus, the recently minted 150 million USDT could be backed either by USD or other assets. Whale Alert, a tracker of large transactions, alerted the community of this. The address of the Tether treasury was noted to be 5754284f345afc66a98fbb0a0afe71e0f007b949, and the hash rate of the minting was 0x974df415696175020d70f5f56d52649557c3283e7d1505c1ce7804cf006a8b5a. The following were the transaction details,
Source: Whale Alert
The community subsequently called out Tether for an “incoming dump,” and the speculation of Bitcoin [BTC] shooting up. However, Paolo Ardoino, Chief Technology Officer [CTO] of Bitfinex, stepped in to inform the community,
“Note: this is authorized but not issued.”
This ‘note’ did not go well with the community as one Twitter user, @LordHodlemort, asked,
“What exactly does that mean? We printed it, but we promise not to spend it?”
The CTO clarified,
“Just it means that these tethers were created in the treasury wallet that will be used to full fill future issuance requests.”
Tether treasury was not the only one preparing itself for future requests, as the USDC treasury minted 2,009,375 USDC on June 13 at 13:09:54 UTC. The USDC address identified was 55fe002aeff02f77364de339a1292923a15844b8 and the hash rate of the transaction was 0x42c79677df5844d45384ce56f68a448b4ec48bbb4577ffae62ede80f7b8c44cd.
Tether Has Just Printed 150 Mln USDT. Another BTC Price Pump Incoming?
Tether, the controversial stablecoin issuer, has recently minted 150 mln USDT. Subsequently, it led to speculation that another BTC price pumpmight be in the pipeline.
Not this time
Bitfinex CTO Paolo Ardoino has clarified that this freshly printed USDT has been authorized without issuing. 150 mln USDT was sent to the company’s treasury account, and it will be used to fulfill the company’s “future issuance requests,” as Ardoino puts it.
Tether has been long suspected of manipulating the price of BTC after a bombshell study, which concluded that BTC reached its current ATH in December 2017 with the help of the controversial stablecoin. However, considering the aforementioned comments made by Ardoino, it is unlikely that the freshly printed USDT will produce a noticeable impact on Bitcoin since it is yet to be actually issued.
👉MUST READEthereum Cofounder Shuts Down Tether Critics
At a crossroads
As reported by U.Today, the BTC price surpassed the $8,000 level on June 10 once again after witnessing a six percent spike. That flew in the face of those who pointed out to numerous technical indicators with bearish bias. Even experienced trading analysts were surprised to see the uptick that took place out of nowhere.
While the bulls expected BTC to finally rise above the lower $8,000 level, it didn’t happen. The top coin has just had another minor pullback that pushed its price back to the $7,800 region.
Tether (USDT) to launch on the EOS blockchain ahead of EOSfinex opening
In an interview with CCN, Bitfinex CTO, Paolo Ardoini has stated that Tether is set to launch on the EOS blockchain as part of the team’s plan to supplement EOSfinex.
In September last year, Bitfinex announced EOSfinex, a decentralized cryptocurrency exchange built on the EOS protocol.
Ardoini told CCN:
“One of the main reasons is that we need it for EOSfinex. Since it is an on-chain exchange we need Tether EOS to offer EOS/USDT and crypto-to-stablecoin pairs on it. EOSFinex is one of the most awaited projects in the EOS community but we thought it would be good to start giving everyone the ability to build on Tether-EOS even before EOSFinex launch.”
Because Tether is currently running on Omni, Ethereum and Tron, Ardoini states that cross-chain support will be key for the long-term success of Tether.
Furthermore, Ardoini states that the Bitfinex team is working with Blockstream to launch Tether on Liquid, and further plans of bringing the stablecoin to the Lightning Network by the end of this year.
“We can’t hide behind the fact that communities are split among multiple projects, so I believe is our duty to serve the blockchains that have the most active communities and clearly that can meet our security standards in terms of issuance,” Ardoini stated. “I’m working with Blockstream to launch Tether on Liquid and as Bitfinex we are collaborating with the RGB protocol community to bring assets to LN (and so I hope that Tether will launch on LN by end of 2019).”