With the recent crypto-crash, focus is not shifting to the alternative coins or Altcoins. One of the small but promising coins is Tether (USDT). With a lot of market uncertainty, USDT is defying all odds to surprise many with its resilience.
At the moment, Tether is ranked 17th with a market capitalization of $2,216,333,774 against a total supply of 2, 217,140,814 USDT. The increase of Tether supply might have rubbed experts the wrong way, much is yet to be seen how the increase will shape the coin in the coming months. USDT is trading at$1.00 with a drop of -0.02% in the last 24 hours.
What is Tether (USDT) Exactly?
Well, some critics have argued it is a coin designed to prop up BTC but this could just be a distraction. Its initial goal was to be used in transferring the UD dollar. This was initially seen as the best way to put volatility in check. This might explain why many see it as the one dollar cryptocurrency of the times.
The truth of the matter is that Tether coins are issues for the UD dollar at a ratio of 1:1 through Bitfinex. The value of USDT keeps hovering around the $1 and has always been used to purchase other digital currencies since its value is standard and stable.
Tether (USDT) Critics and the Media
It has never been smooth sailing for Tether for a while with many criticizing its lack of transparency. Blockchain technology ensures systems and processes are transparent. Tether should be in the forefront to ensure delivery of services as required in a decentralized ecosystem.
Bad social media publicity will not help the USDT investor to increase their digital assets portfolio; it will only slow adoption and traction will stand still. This, however; this may partly explain why the coin still remains at the $1 threshold. Until the secrecy around the coin is unearthed, its growth might require a miracle.
The solidity of USDT can only be increased if there are periodic updates from the development team. In the crypto-sphere, keeping updates to yourself breeds suspicion and mistrust and this is what is hurting Tether. Positive noise is what draws attention leading to adoption and subsequent growth in terms of value and uptake.
As much as there is competition in the cryptocurrency landscape, Tether failure in the market can send ripple across the entire industry. The network is not a stand-alone entity in the industry; it has exchanges and other stakeholders who rely on the token.
The Future of Tether (USDT)
Market analysts agree that Tether (USDT) is a stable ecosystem and has huge potential for growth. Going by its trading value and historical data, any long term investor would shy away from the platform. The future does not look very bright especially the looming trading drops.
Holding on to the USDT token can only means one thing; banking on the future potential once there is transparency. Not many exchanges are willing to list the token; at least for now. Just like the investors, they are sitting at the fence to jump in incase things brighten up.
Some of the sentiments expressed by Pantere Capital Co-chief Investment Officer, Joey Krug in NY Times might come true if the situation does not change.
“This became more and more concerning, because every time the markets went down, you have seen the same thing happen. It could mean that a lot of the rally over December and January might not have been real.”
Tether (USDT) has in the recent past come into the limelight with bitter relationships with their auditing firm, Friedmann LLP. On the other hand, Bitfinex has been accused of not putting investor interest first. With all these glaring issues, Tether future might not be guaranteed and remedial measures need to be taken to salvage the situation if all the news from the media are anything to write home about.