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Tether Holders Heading To Kraken For Offloading USDT

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Tether
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Tether (USDT) is one of the best-known stablecoins in the entire crypto market. As such, it promises to serve as a cryptocurrency with unquestionable stability, as each of its coins is supposedly backed by $1.

However, throughout its history, many have questioned if Tether coins are entirely backed, which has caused a lot of controversies, as well as a fear that investors are holding unbacked coins. These suspicions have increased recently after Tether’s price dropped far below $1.

At the same time, BitFinex, one of the largest exchanges that trade Tether, announced issues with deposits and withdrawals of fiat currencies. This, and similar reports, such as Noble bank losing Tether as their customers, seem to have sparked a desire among investors to offload their coins.

Tether holders unable to return USDT to Tether Ltd

According to Tether’s 2016 white paper, USDT holders should be capable of exchanging their Tether coins for USD by simply returning them to Tether Ltd. However, in the last several months, numerous users reported that they were unable to do so. As a consequence, investors turned to cryptocurrency exchanges in the hope that they will be able to sell their USDT there.

Since BitFinex already announced deposit and withdrawal issues, many have gone to Kraken exchange, as one of the few places where Tether can be converted to USD. Since then, Kraken’s wallet balance increased its Tether supply to almost 47.8 million coins. This has made it the eight-most valuable wallet that holds USDT.

Considering that only two weeks ago, the same wallet held the 22nd place on the list of wallets with the highest amount of USDT, it seems that the rumors are true. Kraken now serves as quite a notable outlier, and investors are indeed using it for exchanging their Tether coins for US dollars.

This indicates that doubts regarding USDT did not only blow over, and Tether holders are in a hurry to exchange their coins. Kraken, which offers only one trading pair for Tether — USDT/USD — claims that investors are merely exchanging Tether for dollars to buy other coins. In other words, the growth of their USDT supply is not a result of investors trying to get rid of Tether, but instead, they are only trying to get to other digital currencies.

This claim is backed by the fact that Kraken has no other trading pairs for USDT, as mentioned. However, back on October 15, when Tether’s price dropped to only $0.85, USDT trading volume spiked like never before. Despite Kraken’s claims, this is a clear sign that investors started seeking ways to offload USDT once its price started dropping.

It would seem that concerns regarding the USDT finally got through to even the most optimistic investors. While these suspicions have been around for a while, most Tether holders likely discarded them as just pessimistic speculation. However, many see the current situation as abandoning this so-called stablecoin in fear of an even larger crash.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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Altcoins

ICTE May Bring About Sweeping Changes for Cryptocurrency Exchanges

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Cryptocurrency has taken the world by storm during the last few years. An entirely new financial market was created almost overnight which has captured the imagination of all its participants. Cryptocurrency is even starting to attract institutional money from investment banks, hedge funds, and other proprietary trading firms. Despite the rapid growth, traders remain extremely frustrated by having to deal with the fragmented nature of centralized crypto exchanges.

A Change is Needed

When cryptocurrency first began, there weren’t many participants and the trading volume was relatively insignificant. But, over time, that has radically changed. Some tokens now have a capitalization in the billions and are being traded 24-7 by institutions all over the world. Despite the volume, significant problems exist with the current way that exchanges work. Some of those problems include the following:

  • Constant fear of hackers
  • Exchange manipulation
  • Fragmented liquidity
  • Risk of identity theft

One of the biggest issues regarding centralized exchanges is the risk of being hacked. These hack stories seem to always be circulating around the internet. While experienced traders may have the tools to avoid becoming a victim, potential new traders have zero interest in dealing with this. And it’s not just the small exchanges that are at risk. Even large exchanges, such as Mt. Gox and Binance, are subject to being hacked.

Another huge risk is having to deal with…

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Altcoins

SonicX and Dash Could Challenge Facebook’s Libra for Global Payments Market Share

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SonicX
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When Satoshi Nakamoto unveiled Bitcoin to the world, the dream was always for Bitcoin to serve as a new universal currency.  It would be free from the bureaucracy of governments.  And free from the tyranny of the old-world financial cartels.  Although the dream hasn’t yet materialized, it comes closer and closer with each passing day.

One of the biggest roadblocks for Bitcoin has been scalability.  At a speed of approximately 7 transactions per second, Bitcoin lags behind other cryptocurrencies like Ripple and global payment processors like Visa.  Many expect the lightning network to have a positive impact on Bitcoin’s TPS but until that comes to fruition, mass adoption will likely need another significant development.

Libra Currency Announcement

One development that could help pave the way toward mass adoption is the launch of the Libra currency.  Libra is expected to go live during the first half of 2020 according to Facebook’s June announcement.  According to Facebook, Libra will make sending money online cheaper and faster.  It will also have a hand in improving access to financial services, especially for the unbanked.  Given Facebook’s global reach, including many third world countries, providing financial access to the unbanked could provide a huge spark to global economies.  Additionally, it could provide the growth spark that cryptocurrency needs.

Facebook’s most popular messenger, WhatsApp, has approximately 1.5 billion monthly users.  This application is…

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