New news about tether?
The parabolic growth in the market cap of stablecoin the great tether (USDT) unexpectedly came to a stop at the end of May. When as bitcoin’s price was decreasing off its all-time highs.
Based on an analysts and market participants ,Muyao Shen, the unexpected stop shows that the most traded cryptocurrency in the world is experiencing its dominance threatened by three unheard challenges merging in a perfect storm to rattle the stablecoin.
- China’s crackdown on cryptocurrencies and money laundering caused a big and huge shock to crypto markets through over the counter brokers. As unwitting bitcoin prices reduced the motivation to invest: “Tether’s market in Asia is mostly through OTC merchants, and with less cash going into the market there is less demand for tether,”. Rachel Lin, former vice president and founding partner at Singapore-based crypto investment firm Matrixport, told Shen.
- The shining star of the stablecoin market is growing more and more ,USDC. “I think USDC has a chance to compete in the stablecoin market in Asia against tether,”. Which told Justin Sun. He runs the Tron blockchain.
- Some asked more questions recently. These questions was asking by regulators and governments around the world about USDT and other stablecoins. “The market is infused with bearish sentiment and traders are looking for a reason,”. Mentioned Noelle Acheson. He is the head of market insights at crypto prime broker Genesis Global Trading. “It’s FUD (fear, uncertainty and doubt) season, and tether’s vulnerabilities are almost always a part of that conversation.”
An executive from Tether, while acknowledging the demand for USDT has fallen, argued the trend is not exclusive to the token.
“Demand for tether ebbs and flows, and has been impacted by lower demand in recent weeks,” Paolo Ardoino, chief technology officer at Tether, said in a written response via a spokesperson.
- Thorchain loses 4K in ether in attack: Thorchain suffered an attack on the crypto trading protocol that drained about 4,000 ETH, worth about $7.7 million based on ether’s price as of press time. The company tweeted that it would provide a “more detailed assessment and recovery steps” soon. Administrators wrote earlier that the network had been halted while developers investigated the extent of the breach. “While the treasury has the funds to cover the stolen amount, we request the attacker get in contact with the team to discuss return of funds and a bounty commensurate with the discovery,” the administrators wrote on Telegram.
- Binance halts support for stock tokens: Crypto exchange Binance said it will no longer support tokens linked to stocks, barely three months after it made them available on its trading platform. Binance announced Friday that stock tokens are unavailable for purchase on its website effective immediately, and support for such tokens will end on Oct. 14, with all positions closed the following day. The embattled exchange, which has been facing regulatory headwinds, said the move will allow it to focus on other products.
- FOX token’s rally: Following ShapeShift’s announcement that it would transform into a decentralized autonomous organization (DAO), its governance FOX token rose 300% to $1.16 in several hours. While the cryptocurrency has retraced to $0.55 in the past 24 hours, it’s still up almost 200% this week – a stellar performance considering the broader market lull. Analysts stand divided on whether the rally represents an ever-intensifying search for yield or investors cheering ShapeShift’s early-mover advantage as a DAO.