There has been a lot of controversy surrounding the stablecoin Tether lately. This digital stablecoin is used as an equivalent to the US dollar. In theory, 1 Tether is attached to 1 US dollar. New Bloomberg research proves that the current balance of Tether fiat accounts is equal to or even greater than USDT, which was in circulation from September 2017 to July 2018.
The value of the Tether token, which should be stable, has been fluctuating greatly over the past few months. Last month, the company, along with the Bitfinex exchange, faced a problem with price manipulation. Around the same time, the company severed business relations with Noble Bank and the bank Deltec, after as the community began to ask questions regarding their liquidity.
Bitfinex, in turn, denied any connections with Tether’s banking partners.
Many traders use Tether to hedge positions during a period when the value of cryptocurrencies has dropped significantly. Largely due to this, its popularity is growing.
Currently, the prices of Bitcoin and altcoins are rising. Most of the latter added to their value from 20% to 35%.
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