Connect with us

Blogs

Tether Holders Heading To Kraken For Offloading USDT

Published

on

Tether
READ LATER - DOWNLOAD THIS POST AS PDF

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.

For real-time trade alerts and a daily breakdown of the crypto markets, sign up for Elite membership!

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.

Image courtesy of Pexels

Blogs

What Changes May the Crypto Space Experience in 2019

Published

on

crypto
READ LATER - DOWNLOAD THIS POST AS PDF

After the crypto hype of 2017, a lot of newly-arrived crypto enthusiasts were caught off-guard by the price crash and bear market that took over in 2018. One month after another, investors were waiting for things to change, and for another bull run to take place. Unfortunately, this did not happen in 2018, and while the year’s final days were seemingly stable, the rally everyone wanted to see has failed to arrive.

However, crypto investors remain optimistic, with many of them hoping to see some changes arrive in 2019. There are rather great expectations of this year, especially since the last one failed to deliver. However, many are interested in what exactly is to be expected in this year, which is what we will talk about today.

Bitcoin ETF approval

The US SEC’s decision regarding Bitcoin ETFs was one of the most anticipated events throughout 2018. Sadly, the decision constantly got delayed, and the SEC never actually provided an answer. The last delay has pushed the decision into 2019, and it is now expected to arrive on February 27.

Historically, the SEC was never ready to approve Bitcoin ETF, and many believe that the delays came due to the fact that the market was not ready for then in 2018. This is backed by the fact that the SEC rejected multiple application throughout the year. VanEck and SolidX…

Continue Reading

Blogs

Reasons Why 2019 May Be A Great Year For Crypto

Published

on

crypto
READ LATER - DOWNLOAD THIS POST AS PDF

The new year was always considered to be a time of new beginnings, where people can reflect on the past and learn from their mistakes in order to be better in the future. The same is true for the world of crypto, and investors around the world are hoping for 2019 to be better, more profitable, and to have more success than 2018.

The hope for the future is even more important when we consider all the negative development in 2018. There were numerous high-profile hacking attacks, two market crashes, with a strong bear market in between. Not to mention that some of the biggest projects that may have brightened the year a bit ended up being delayed.

With that in mind, it is understandable why investors are looking forward to the new year and all the potential development that it may bring. In fact, there are several reasons why they should be excited about 2019.

1) Bearish market to loosen its grip

The first reason why 2019 can be a good year digital currencies is that it may finally break free of the bearish grip that has been felt ever since last January. Following the first market crash, the bears settled in, and the prices kept falling for an entire year. The market attempted to shake off the negativity on several occasions, with the biggest one being…

Continue Reading

Blogs

3 Coins with the Largest Potential in 2019

Published

on

coins
READ LATER - DOWNLOAD THIS POST AS PDF

2018 has been a pretty bad year for digital coins, and after the initial market crash that occurred a year ago, everyone was expecting a bull run that will fix things. Obviously, it never arrived, and instead of that, all that crypto market experienced was an entire bearish year and another crash in mid-November.

Now, however, it is a brand new year, and attempts to shake off the bears’ grip can be seen even in these first two weeks. The market is still struggling and mostly losing value, rather than gaining, with most coins being in trouble once more. Still, a lot can happen in a year, and most investors remain optimistic regarding 2019. Here are some of the coins that are believed to have tremendous potential, and to be the hope of this year.

  1. Bitcoin (BTC)

Of course, Bitcoin comes first. This is the first cryptocurrency which is still dominating the market, with no other coin being even close to its market cap or price. BTC is the coin that has reached the most prominent heights, and it also lost the most in the previous year. However, there is still hope, as there are several projects and events scheduled for this year that might turn things around for the number one coin.

One thing that is expected is the approval of Bitcoin ETFs…

Continue Reading

Elite