USDT Remains 'Un-Tethered' Against USDC and BUSD

The banking crisis that gripped the United States, had a domino effect on stablecoins, particularly on Circle’s USDC. Investors flocked to rival stablecoin Tether (USDT) as USDC’s value fell below the $1 mark. Although the asset has regained its dollar peg, the market cap of the project has significantly decreased.

USDC is not the only stablecoin to face issues. In mid-February 2023, Binance’s BUSD stablecoin issued by Paxos saw the end of its issuance. The U.S. Securities and Exchanges Commission (SEC) cited Paxos Trust for failing to declare the Binance stablecoin as a security. BUSD has been identified by the SEC as an unregistered security, with all the potential legal ramifications that could ensue. The New York Department of Financial Services ordered Paxos Trust Co. to stop printing any more BUSD.

With two large players in the stablecoin industry out of the way, Tether (USDT) has managed to attract a significant clientele from both platforms. According to data from CryptoSlate, the supply of USDT has increased by more than 10% in the previous 30 days to $77.8 billion. Even Binance founder and CEO, CZ, acknowledged USDT’s growth on Twitter.

Moreover, in 2022, Tether handled more settlements than Visa and Mastercard, two of the largest payment platforms. While Visa and Mastercard undertook $7.7 trillion and $14.1 trillion settlements respectively, Tether handled $18.2 trillion. Moreover, Indonesia announced that the country will be phasing out Visa and Mastercard. Additionally, the development will likely see an increase in Bitcoin (BTC) and USDT use, as pointed out by Gabor Gurbacs.

The downside of Tether (USDT)

Although Tether has maintained its popularity among users, there are some aspects that attract criticism. One of the major drawbacks of the project is its reluctance to share its proof of reserves. Despite repeated promises, the platform has not been transparent about whether each token is backed 1:1 with the dollar or not.

The company finished its reserves attestation by the well-known international accounting firm BDO in February 2023. The consolidated reserves report (CRR) for Tether as of December 31, 2022, is accurate, according to BDO’s assurance opinion, which was made public by the stablecoin company on February 9. According to the CRR, Tether has consolidated assets worth at least $67 billion, more than its liabilities, which total $66 billion, and excess reserves of at least $960 million. However, a complete backing of assets is still due from the company’s side.

  • BUSD
  • Tether
  • USDC
  • USDT

Comments

Post a Comment

Popular posts from this blog

LBank Breaks Down Bitcoin's Double-Digit Price Surge

Image
Road Town, BVI, 25th March, 2023, Chainwire Global cryptocurrency exchange LBank has analyzed Bitcoin’s spot performance, which has culminated in an eight-month high of $28,000. LBank Co-founder Johnason Chan and LBank Labs board of directors member Czhang Lin have provided in-depth analysis of the price increase.  Shortly after the collapse of Silvergate Bank, Silicon Valley Bank (SVB), and later Signature Bank , liquidity concerns for decentralized fintech players piled up. Many believed a valuation drop would have been inevitable for crypto. However, Bitcoin has performed beyond expectations, starting the week off with a 27% rise to just below $28,000 . At the time of writing, the world’s largest digital asset by market capitalization seems to have stabilized, continuing to hover around $28,000. The market movement of Bitcoin is hard to make sense of, considering the ongoing unraveling of a banking crisis and expectations of further US interest rate hikes . However,...
Read more

How to Buy Bitcoin in 2023

This is the best time to get into the Bitcoin trade. Cryptocurrencies are now widely accepted and they are making their way to traditional stock exchanges, with the backing of some large investors. They are easy to use and countless businesses accept them as a payment option. In this article, we’ll explain what are the best ways to buy Bitcoin and how to do it as a novice. We’ll also present you with a few options when it comes to exchanges since all of them have some unique benefits that may be useful to a specific group of investors. The Essentials  Before getting into the different exchanges and how to use them, we’ll first go over the essentials. The basic process for buying Bitcoin is the same regardless of which exchange you’re using and how much Bitcoin you’re buying. The process is done in 4 simple steps. Open an Account with an Exchange  Visit any exchange you want and set up an account on it. The process is similar to setting...
Read more

Core's Revolutionary Satoshi Plus Consensus Marries Decentralization, Security, and Scalability

Image
Singapore, Singapore, 30th March, 2023, Chainwire Core is a novel layer one blockchain that is pushing the boundaries within the crypto space. Inspired by Bitcoin and Ethereum, Core progresses beyond those blockchain behemoths by synthesizing each of their superpowers. A student of blockchain history, philosophy, and innovation, Core optimally balances decentralization, security, and scalability. Without Core’s advancements, crypto has been plagued by the “Blockchain Trilemma,” which states that decentralization, security, and scalability can never be achieved simultaneously. Tackling the Trilemma head-on, Core DAO contributors have designed a unique consensus mechanism known as Satoshi Plus, which marries the decentralization and security of Bitcoin’s Proof of Work (PoW) with the scalability of Delegated Proof of Stake (DPoS).  With Satoshi Plus consensus, both Bitcoin miners and CORE token holders can participate in network security by delegating their BT...
Read more