{"id":91386,"date":"2018-10-30T09:00:56","date_gmt":"2018-10-30T16:00:56","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=91386"},"modified":"2019-11-07T02:24:26","modified_gmt":"2019-11-07T02:24:26","slug":"is-tether-quietly-exiting-the-market","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/is-tether-quietly-exiting-the-market\/","title":{"rendered":"Is Tether Quietly Exiting the Market?"},"content":{"rendered":"

The stablecoin Tether has been the subject of controversy, speculation, and what some are calling \u201cweaponized FUD<\/span><\/a>\u201d in recent weeks. Some have speculated the company\u2019s lack of transparency surrounding its dollar-backed crypto offering could mean insolvency. Last week, CryptoSlate reported that Tether removed almost half the USDT in circulation and burned them<\/span><\/a>. But, rather than imploding, what if the company is simply winding down?<\/span><\/p>\n

Stablecoin Boom Amid Tether Headlines<\/h2>\n

The theory posed by an independent researcher who goes by the name Hasu. In a post on his Medium blog, Hasu explains why<\/span><\/a> Tether might actually be selling off their assets in preparation to close up shop and leave the market altogether. And, why that could be good for all parties involved. <\/span><\/p>\n

Hasu points to Tether\u2019s recent trouble as something competing stablecoins could use to their advantage, since previously USDT\u2019s position as a stablecoin was so well-secured that it would take either insolvency or negative consequences from regulation for them to fail, and for competing coins to take their place. <\/span><\/p>\n

This month, competing stablecoins like Paxos<\/span><\/a> and TrueUSD<\/span><\/a>, both pegged to the U.S. dollar and thus in competition with Tether, have had banner sales and are trading at just over one dollar as of this writing. Tether is back up to just under a dollar in value, but we still see tokens being reclaimed, with another 100 million USDT sent to its treasury account<\/span><\/a> last week.<\/span><\/p>\n

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Quick Tether update:
– Since the $500M burn, $100M more have been redeemed
– Tether mcap now at $1.92B
– Spread to $1 continues to close, now at 1.5%. Bitfinex Premium <100$
– Expect redemptions to continue and Mcap to fall at least until USDT is back at $1. pic.twitter.com\/o9aZ3jZcXc<\/a><\/p>\n

— Hasu (@hasufl) October 27, 2018<\/a><\/p><\/blockquote>\n