Major Crypto Markets Sturdy as Alt Coin Tether DropsThis week shows how positive it was for Bitcoin as it jumped around 9% as investors fled the so-called stable coin Tether (USDT) en maze. The afternoon trading, Einstein Exchange marked Bitcoin at $6,677.90 which shows that it was up at 0.88%. Other crypto currencies were down or up marginally. What is Tether?
It’s an issuer of a cryptocurrency with a definite twist. Unlike Bitcoin, whose value fluctuates wildly from day to day, Tether’s tokens are designed for stability. Prices for the coins have historically stayed near US $1 because Tether tokens are allegedly tied to the U.S. dollar, with the eponymous company behind them claiming that it has a dollar in its accounts for each token it issues. There is no conclusive evidence to support this claim, but the token is still often used as a dollar substitute for trading purposes, as they are more easily transferred between exchanges than dollars are. Some have long suspected that the Tether operation is being used to buy a load of Bitcoins for nothing, effectively propping up the value of BTC. It so happens that Tether and a major cryptocurrency exchange called Bitfinex share the same CEO, and Tether forwards all its freshly minted tokens to Bitfinex. When they get there, the price of Bitcoin tends to go up, suggesting Tether tokens are being used to buy Bitcoins. On Monday, the value of the Tether token, which had been worth around 99 cents, suddenly plunged as low as 93 cents, before recovering to around 97 cents. A sudden exodus from the most popular dollar-linked cryptocurrency rippled through digital asset markets on Monday, saddling some investors with losses while propelling Bitcoin to its biggest gain in more than three weeks. Tether, the so-called stable coin used as a substitute for the U.S. currency on crypto exchanges around the world, broke its historically tight link with the greenback, touching 85 cents on U.S.-based venue Kraken. Transactions on Binance, one of the world’s most active platforms for Tether, recently implied a price of about 96 cents, according to CoinMarketCap.com. Bitcoin jumped as much as 8.9 percent to $6,769 as Tether holders shifted into alternative virtual currencies. Source link:- Major Crypto Markets Sturdy as Alt Coin Tether Drops
1 Comment
Lhynzie
12/7/2021 08:23:25 pm
Amazing article! Thank you for sharing this very informative blog. Keep on posting.
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