The Waves team presented a plan to recapitalize USDN algostablecoin
The Waves Platform team has unveiled a “priority” recapitalization plan for the Neutrino USD (USDN) algorithmic stablecoin.
In early December, the Digital Asset eXchange Alliance, an association of South Korean cryptocurrency exchanges, issued a warning to investors about the risks associated with the Waves platform amid the loss of USDN parity against the US dollar.
The asset has not been able to re-link since August. At the time of writing, it is trading near $0.51. According to CoinGecko , the circulating offer is valued at $99 million.
According to Waves, the developers need to “restore the trust of arbitrageurs to participate in maintaining the USDN peg.” To do this, it is planned to increase the reserve provision of the asset and increase its price stability.
The Waves Platform team has unveiled a “priority” recapitalization plan for the Neutrino USD (USDN) algorithmic stablecoin.
In early December, the Digital Asset eXchange Alliance, an association of South Korean cryptocurrency exchanges, issued a warning to investors about the risks associated with the Waves platform amid the loss of USDN parity against the US dollar.
The asset has not been able to re-link since August. At the time of writing, it is trading near $0.51. According to CoinGecko , the circulating offer is valued at $99 million.
According to Waves, the developers need to “restore the trust of arbitrageurs to participate in maintaining the USDN peg.” To do this, it is planned to increase the reserve provision of the asset and increase its price stability.
Is it safe to transfer funds to Tether and stablecoins?
The precipitous collapse of UST and the stress test for many other stablecoins has raised serious concerns about the sustainability of the main stablecoin, Tether.
However, a detailed analysis of the main arguments against USDT confirms their failure. The reserves and liquidity of Tether assets are increasing, and the security of liabilities is confirmed by state and independent audits. Most importantly, however, is its ability to regain parity with the dollar despite the short-term depreciation immediately following the Terra crisis. Therefore, most realistic scenario for Tether is loss of leadership in favor of its competitor USDC.
However, the realization or non-realization of this scenario will depend on the dynamics of trading and the DeFi segment in the coming months. According to our estimates, all five leading stablecoins - USDT, USDC, BUSD, DAI and MIM - will successfully maintain parity with the US dollar for at least the next 2-3 years.
The precipitous collapse of UST and the stress test for many other stablecoins has raised serious concerns about the sustainability of the main stablecoin, Tether.
However, a detailed analysis of the main arguments against USDT confirms their failure. The reserves and liquidity of Tether assets are increasing, and the security of liabilities is confirmed by state and independent audits. Most importantly, however, is its ability to regain parity with the dollar despite the short-term depreciation immediately following the Terra crisis. Therefore, most realistic scenario for Tether is loss of leadership in favor of its competitor USDC.
However, the realization or non-realization of this scenario will depend on the dynamics of trading and the DeFi segment in the coming months. According to our estimates, all five leading stablecoins - USDT, USDC, BUSD, DAI and MIM - will successfully maintain parity with the US dollar for at least the next 2-3 years.
🇺🇸US exchange regulator fines Tether auditor $1.5 million
The Securities and Exchange Commission today charged accounting firm Friedman LLP with professional misconduct for failing to comply with Public Company Accounting Oversight Board standards in its audits of two public companies from 2017 to 2020. Friedman agreed to settle the costs and pay approximately $1.5 million in total cash assistance.
Without acknowledging or denying the Securities and Exchange Commission's findings, Friedman agreed to face conviction, honor his staff's training obligations, and pay $524,138 in damages, $40,574 in pending judgment, and a $1,000,000 monetary penalty. dollars.
The Securities and Exchange Commission today charged accounting firm Friedman LLP with professional misconduct for failing to comply with Public Company Accounting Oversight Board standards in its audits of two public companies from 2017 to 2020. Friedman agreed to settle the costs and pay approximately $1.5 million in total cash assistance.
Without acknowledging or denying the Securities and Exchange Commission's findings, Friedman agreed to face conviction, honor his staff's training obligations, and pay $524,138 in damages, $40,574 in pending judgment, and a $1,000,000 monetary penalty. dollars.
🚀 Tether, City of Lugano Announce Second Plan ₿ Forum in 2023
Tether Operations Limited (Tether), the company operating the blockchain-enabled platform tether.to that powers the first and most widely used stablecoin, and the Swiss city of Lugano announced today that the second annual Plan ₿ forum has been scheduled and will be held on Friday, October 20 through Saturday, October 21, 2023. The announcement comes just weeks after the conclusion of the massively successful, first-ever Plan ₿ forum, which attracted nearly 2,000 attendees. The first wave of tickets are on sale now at https://planb.lugano.ch/planb-forum at a special discounted rate that runs until January 31, 2023 or until they sell out.
The plan will scale blockchain and Bitcoin throughout the city to positively impact all facets of daily life for the residents of Lugano. From small transactions with local merchants to larger efforts – such as paying annual taxes – blockchain will serve as the foundation for the city’s financial exchanges.
Tether Operations Limited (Tether), the company operating the blockchain-enabled platform tether.to that powers the first and most widely used stablecoin, and the Swiss city of Lugano announced today that the second annual Plan ₿ forum has been scheduled and will be held on Friday, October 20 through Saturday, October 21, 2023. The announcement comes just weeks after the conclusion of the massively successful, first-ever Plan ₿ forum, which attracted nearly 2,000 attendees. The first wave of tickets are on sale now at https://planb.lugano.ch/planb-forum at a special discounted rate that runs until January 31, 2023 or until they sell out.
The plan will scale blockchain and Bitcoin throughout the city to positively impact all facets of daily life for the residents of Lugano. From small transactions with local merchants to larger efforts – such as paying annual taxes – blockchain will serve as the foundation for the city’s financial exchanges.
Tether blocks USDT for more than $8 million
USDT stablecoin issuer blacklisted three crypto addresses that tried to withdraw over $8 million via Bitfinex
Tether , the issuer of the stablecoin USDT, blacklisted three cryptocurrency addresses on the Ethereum network that tried to withdraw $8.2 million through the Bitfinex crypto exchange, according to Whale Alert.
Why the addresses are blocked is unclear. Who may be their owner is also not reported. Prior to blocking, the addresses successfully contacted the Tether smart contract to buy USDT in amounts from several hundred thousand US dollars, according to the transaction history.
This is not the first operation to block funds. At the end of August, the BeInCrypto editors wrote that Tether Limited blocked over 700 addresses where assets worth over $420 million were stored. At the same time, August 2022 became the company’s record blocking month, when the stablecoin issuer froze 716 addresses.
USDT stablecoin issuer blacklisted three crypto addresses that tried to withdraw over $8 million via Bitfinex
Tether , the issuer of the stablecoin USDT, blacklisted three cryptocurrency addresses on the Ethereum network that tried to withdraw $8.2 million through the Bitfinex crypto exchange, according to Whale Alert.
Why the addresses are blocked is unclear. Who may be their owner is also not reported. Prior to blocking, the addresses successfully contacted the Tether smart contract to buy USDT in amounts from several hundred thousand US dollars, according to the transaction history.
This is not the first operation to block funds. At the end of August, the BeInCrypto editors wrote that Tether Limited blocked over 700 addresses where assets worth over $420 million were stored. At the same time, August 2022 became the company’s record blocking month, when the stablecoin issuer froze 716 addresses.
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Tether freezes 46 million USDT owned by FTX
Tether freezes 46,360,701 USDT ($46.3 million) wallet address on Tron network
The stablecoin issuer Tether has frozen $46 million in USDT at the request of law enforcement. This is reported by Whale Alert . The wallet was frozen at 14:11 UTC on November 10th. Presumably it belongs to the FTX crypto exchange.
The crypto community has criticized Tether's decision, which does not comply with the principles of decentralization. However, this is not the first time that the stablecoin issuer has blocked wallets, including at the request of the authorities. For example, in October of this year, Tether froze three addresses that were trying to withdraw $8.2 million through Bitfinex. And in August, the stablecoin issuer froze 716 addresses.
Tether freezes 46,360,701 USDT ($46.3 million) wallet address on Tron network
The stablecoin issuer Tether has frozen $46 million in USDT at the request of law enforcement. This is reported by Whale Alert . The wallet was frozen at 14:11 UTC on November 10th. Presumably it belongs to the FTX crypto exchange.
The crypto community has criticized Tether's decision, which does not comply with the principles of decentralization. However, this is not the first time that the stablecoin issuer has blocked wallets, including at the request of the authorities. For example, in October of this year, Tether froze three addresses that were trying to withdraw $8.2 million through Bitfinex. And in August, the stablecoin issuer froze 716 addresses.
⁉️ What happened to the mining industry in 2022
According to Hashrate Index experts, the current crypto winter has not become a more difficult test for bitcoin miners than the previous ones. For example, during the bearish phase of 2020, revenue per kWh dropped to $0.083. Now the minimum is fixed at $0.108 (with half the duration of the incomplete cycle).
Analysts believe that North American miners will further increase their share in the hash rate of the first cryptocurrency.
The weight of public companies in the total is also likely to grow. However, this process will slow down - since the beginning of the year, the shares of companies traded on the stock exchange have lost up to 90% of their value. This will make it difficult for them to access additional funding.
According to many experts, the bear market will end in the spring of 2023. This is also indicated by the duration of similar previous periods. The industry will have time to prepare for the next Bitcoin halving, which will take place in 2024.
According to Hashrate Index experts, the current crypto winter has not become a more difficult test for bitcoin miners than the previous ones. For example, during the bearish phase of 2020, revenue per kWh dropped to $0.083. Now the minimum is fixed at $0.108 (with half the duration of the incomplete cycle).
Analysts believe that North American miners will further increase their share in the hash rate of the first cryptocurrency.
The weight of public companies in the total is also likely to grow. However, this process will slow down - since the beginning of the year, the shares of companies traded on the stock exchange have lost up to 90% of their value. This will make it difficult for them to access additional funding.
According to many experts, the bear market will end in the spring of 2023. This is also indicated by the duration of similar previous periods. The industry will have time to prepare for the next Bitcoin halving, which will take place in 2024.
Tether commented on the stoppage of USDT deposits on Solana by exchanges
The USDT stablecoin issuer assured users of the reliability of the asset based on the Solana network amid the suspension of deposits on crypto exchanges
The decision of some crypto companies to freeze Solana-based USDT acceptance is likely due to the close ties between the bankrupt FTX, Alameda, and the Solana network. The company issuing the stablecoin Tether expressed this opinion in a press release.
Recall that earlier the Binance crypto exchange, without explanation, first curtailed (and later resumed) deposits in USDT and USDC stablecoins based on Solana. Prior to this, Solana-based stablecoins were no longer accepted by the crypto-currency company Crypto.com. Then the representatives of the company said that they had made the decision “because of recent events”, hinting at the collapse of the FTX crypto exchange, which actively supported Solana. Also, deposits in stablecoins on Solana turned into OKX (formerly OKEx).
The USDT stablecoin issuer assured users of the reliability of the asset based on the Solana network amid the suspension of deposits on crypto exchanges
The decision of some crypto companies to freeze Solana-based USDT acceptance is likely due to the close ties between the bankrupt FTX, Alameda, and the Solana network. The company issuing the stablecoin Tether expressed this opinion in a press release.
Recall that earlier the Binance crypto exchange, without explanation, first curtailed (and later resumed) deposits in USDT and USDC stablecoins based on Solana. Prior to this, Solana-based stablecoins were no longer accepted by the crypto-currency company Crypto.com. Then the representatives of the company said that they had made the decision “because of recent events”, hinting at the collapse of the FTX crypto exchange, which actively supported Solana. Also, deposits in stablecoins on Solana turned into OKX (formerly OKEx).
🔥 Tether withdrew $1B USDT from the Solana blockchain as part of a cross-chain swap
Tether announced a swap that saw the company convert $1 billion USDT stored on the Solana blockchain, transferring its stablecoins to Ethereum
USDT stablecoin issuer Tether announced a large-scale swap between blockchains. The company converted $1 billion of its USDT stablecoins stored on the Solana blockchain into ERC20 token format based on the Ethereum blockchain.
As an initial reaction to the news, which broke on the evening of November 18, the price of the SOL coin weakened by approximately 0.03%, and the total value of assets locked in the Solana DeFi protocols decreased by 10.95% to $297.73 million, according to according to DeFiLlama.
Tether has done such swaps between blockchains before. So, in mid-2020, the project converted stablecoins from Tron to Ethereum twice. Both times the amounts also amounted to $1 billion.
Tether announced a swap that saw the company convert $1 billion USDT stored on the Solana blockchain, transferring its stablecoins to Ethereum
USDT stablecoin issuer Tether announced a large-scale swap between blockchains. The company converted $1 billion of its USDT stablecoins stored on the Solana blockchain into ERC20 token format based on the Ethereum blockchain.
As an initial reaction to the news, which broke on the evening of November 18, the price of the SOL coin weakened by approximately 0.03%, and the total value of assets locked in the Solana DeFi protocols decreased by 10.95% to $297.73 million, according to according to DeFiLlama.
Tether has done such swaps between blockchains before. So, in mid-2020, the project converted stablecoins from Tron to Ethereum twice. Both times the amounts also amounted to $1 billion.
🔥 Tether Gold (XAU₮) Goes Live on ICRYPEX
🗓 January 9, 2023: Tether Operations Limited (Tether), the company operating the blockchain-enabled platform tether.to that powers the first and most widely used stablecoin, announced today that Tether Gold (XAU₮) will be listed on ICRYPEX, one of Turkey’s leading cryptocurrency trading platforms. With this listing, ICRYPEX users can buy and sell XAU₮, a crypto asset that represents ownership of physical gold held in a vault in Switzerland.
There are many stablecoins in the crypto markets that are indexed to different commodities. Tether Gold stands out as a stablecoin that was launched in 2020 by the developer team of Tether and is quite known in the crypto ecosystem. The stablecoin, which is valued in direct proportion to gold prices, allows users who want to buy and sell gold to make easy and fast transactions.
"Tether Gold stands out as a gold-backed stablecoin"
🗓 January 9, 2023: Tether Operations Limited (Tether), the company operating the blockchain-enabled platform tether.to that powers the first and most widely used stablecoin, announced today that Tether Gold (XAU₮) will be listed on ICRYPEX, one of Turkey’s leading cryptocurrency trading platforms. With this listing, ICRYPEX users can buy and sell XAU₮, a crypto asset that represents ownership of physical gold held in a vault in Switzerland.
There are many stablecoins in the crypto markets that are indexed to different commodities. Tether Gold stands out as a stablecoin that was launched in 2020 by the developer team of Tether and is quite known in the crypto ecosystem. The stablecoin, which is valued in direct proportion to gold prices, allows users who want to buy and sell gold to make easy and fast transactions.
"Tether Gold stands out as a gold-backed stablecoin"
Hong Kong confirms its course towards the development of the crypto industry
Hong Kong Financial Secretary Paul Chan announced that the jurisdiction is ready to accept crypto-currency companies from all over the world, 8BTC reports.
The official noted that the authorities recently finalized a licensing regime for the industry. In accordance with the adopted rules, crypto companies are subject to the requirements that apply to the traditional financial sector.
In December, the G-Rocket accelerator announced that it would help 1,000 Web3 startups open businesses in Hong Kong over the next three years. The company launched the Hong Kong Web3.0 Hub initiative in November following the government's announcement of a desire to develop the virtual asset industry.
At the end of 2022, two ETFs began trading on the Hong Kong Stock Exchange , pegged to U.S.-listed futures for cryptocurrencies.
This comes after the Bureau of Financial Services and Treasury issued a statement in October easing restrictions on cryptocurrencies and a willingness to engage with virtual asset service providers.
The regulator then noted that the autonomous region is also open to industry exchange-traded funds, and announced the introduction of appropriate regulatory mechanisms and investor protection.
Hong Kong Financial Secretary Paul Chan announced that the jurisdiction is ready to accept crypto-currency companies from all over the world, 8BTC reports.
The official noted that the authorities recently finalized a licensing regime for the industry. In accordance with the adopted rules, crypto companies are subject to the requirements that apply to the traditional financial sector.
In December, the G-Rocket accelerator announced that it would help 1,000 Web3 startups open businesses in Hong Kong over the next three years. The company launched the Hong Kong Web3.0 Hub initiative in November following the government's announcement of a desire to develop the virtual asset industry.
At the end of 2022, two ETFs began trading on the Hong Kong Stock Exchange , pegged to U.S.-listed futures for cryptocurrencies.
This comes after the Bureau of Financial Services and Treasury issued a statement in October easing restrictions on cryptocurrencies and a willingness to engage with virtual asset service providers.
The regulator then noted that the autonomous region is also open to industry exchange-traded funds, and announced the introduction of appropriate regulatory mechanisms and investor protection.
💳 Mastercard and Polygon to Launch Web3 Program for Aspiring Musicians
Payments giant Mastercard has partnered with Polygon to launch the Web3 Mastercard Artist Accelerator program for emerging music artists.
The program will start in the spring of 2023. The organizers intend to help the development of musicians, DJs and producers in the digital economy.
Participants are promised exclusive access to events, music releases, training in issuing their own non-fungible tokens (NFT) and more.
The payment giant will also release a limited-edition NFT Mastercard Music Pass, which will give fans access to learning along with program members.
Recall that in December 2022, Polygon launched a Web3 platform for personalizing NFT Debit, Mastercard debit cards from the financial application Hi.
Payments giant Mastercard has partnered with Polygon to launch the Web3 Mastercard Artist Accelerator program for emerging music artists.
The program will start in the spring of 2023. The organizers intend to help the development of musicians, DJs and producers in the digital economy.
Participants are promised exclusive access to events, music releases, training in issuing their own non-fungible tokens (NFT) and more.
The payment giant will also release a limited-edition NFT Mastercard Music Pass, which will give fans access to learning along with program members.
Recall that in December 2022, Polygon launched a Web3 platform for personalizing NFT Debit, Mastercard debit cards from the financial application Hi.
📈🚀 Bitcoin rises above $17,000
On Monday, January 9, the quotes of the first cryptocurrency for the first time since mid-December 2022 exceeded $17,000. Over the past day, the asset has risen in price by 1.6%, according to CoinGecko .
At the time of writing, Bitcoin is trading near the $17,200 mark. As you can see in the chart below, the price increase is accompanied by a surge in trading volume.
According to Coinglass , positions worth $187.2 million were liquidated in the futures market per day. Of these, $22.5 million were contracts based on Bitcoin, $49.5 million were Ethereum.
The price of the second largest cryptocurrency by capitalization is at $1309 (+3.6% in the last 24 hours).
Earlier, Galaxy Digital founder Mike Novogratz reiterated his prediction that the price of the first cryptocurrency would rise to $500,000.
Former BitMEX CEO Arthur Hayes opined that bitcoin has bottomed out as almost every “irresponsible organization” has run out of BTC to sell.
On Monday, January 9, the quotes of the first cryptocurrency for the first time since mid-December 2022 exceeded $17,000. Over the past day, the asset has risen in price by 1.6%, according to CoinGecko .
At the time of writing, Bitcoin is trading near the $17,200 mark. As you can see in the chart below, the price increase is accompanied by a surge in trading volume.
According to Coinglass , positions worth $187.2 million were liquidated in the futures market per day. Of these, $22.5 million were contracts based on Bitcoin, $49.5 million were Ethereum.
The price of the second largest cryptocurrency by capitalization is at $1309 (+3.6% in the last 24 hours).
Earlier, Galaxy Digital founder Mike Novogratz reiterated his prediction that the price of the first cryptocurrency would rise to $500,000.
Former BitMEX CEO Arthur Hayes opined that bitcoin has bottomed out as almost every “irresponsible organization” has run out of BTC to sell.
Mining company Riot drops "blockchain" from its name
One of the largest bitcoin miners in the industry, Riot Blockchain, has changed its name to Riot Platforms during the rebranding to emphasize the “growing diversification” of business operations.
“The range and scope of our business continues to expand. This rebrand better reflects our position as strategic capital allocators to expand the reach of Bitcoin-centric operations,” said Jason Les, CEO of Riot Platforms.
In November, hosting provider Applied Digital, formerly known as Applied Blockchain, made a similar decision. The company also explained this step by the desire for diversification.
Some companies even shift their focus to other areas. For example, in August, Stronghold Digital Mining focused on selling electricity to the grid.
Recall that in November, Riot Blockchain mined a record 521 BTC and increased the hashrate to its maximum of 7.7 EH/s.
One of the largest bitcoin miners in the industry, Riot Blockchain, has changed its name to Riot Platforms during the rebranding to emphasize the “growing diversification” of business operations.
“The range and scope of our business continues to expand. This rebrand better reflects our position as strategic capital allocators to expand the reach of Bitcoin-centric operations,” said Jason Les, CEO of Riot Platforms.
In November, hosting provider Applied Digital, formerly known as Applied Blockchain, made a similar decision. The company also explained this step by the desire for diversification.
Some companies even shift their focus to other areas. For example, in August, Stronghold Digital Mining focused on selling electricity to the grid.
Recall that in November, Riot Blockchain mined a record 521 BTC and increased the hashrate to its maximum of 7.7 EH/s.
Grayscale GBTC discount exceeded 45%
Decline in Bitcoin Trust (GBTC) quotes from Grayscale Investments relative toNAVreached 45.17%. This is evidenced by the yCharts data.
Grayscale Investment manages 632,078 BTC worth ~$10.5 billion. This is 3.28% of the market capitalization of the first cryptocurrency.
The company founded by Barry Silbert also manages Ethereum Classic (ETC) worth $190.8 million. This is 8.5% of ETC's market capitalization. The decrease in quotations relative to net worth in this case is 76.69%.
The GBTC discount began to take shape at the beginning of 2021, amid the departure of Barry Silbert from the position of CEO.
A delay in the approval of an application to transform the structure into an exchange-traded fund (ETF) also contributed to the decline in the bitcoin trust quotes . The head of the company Michael Sonnenschein called this task the most important priority.
Decline in Bitcoin Trust (GBTC) quotes from Grayscale Investments relative toNAVreached 45.17%. This is evidenced by the yCharts data.
Grayscale Investment manages 632,078 BTC worth ~$10.5 billion. This is 3.28% of the market capitalization of the first cryptocurrency.
The company founded by Barry Silbert also manages Ethereum Classic (ETC) worth $190.8 million. This is 8.5% of ETC's market capitalization. The decrease in quotations relative to net worth in this case is 76.69%.
The GBTC discount began to take shape at the beginning of 2021, amid the departure of Barry Silbert from the position of CEO.
A delay in the approval of an application to transform the structure into an exchange-traded fund (ETF) also contributed to the decline in the bitcoin trust quotes . The head of the company Michael Sonnenschein called this task the most important priority.
🏢 Bitcoin exchange parent company Mercado lays off staff
2TM Group, the parent company of the Brazilian cryptocurrency exchange Mercado Bitcoin, announced a layoff amid the unfavorable situation in the global economy. CoinDesk writes about it .
"The changing global financial landscape, rising interest rates and inflation have had a major impact on technology companies," the statement said.
The company did not specify the number of laid-off employees. Its representatives noted that "the scenario requires adjustments that go beyond cutting operating costs." According to the publication, we can talk about 86 positions.
In December 2021, 2TM Group closed a $50.3 million Series B extended funding round . Prior to this, the firm raised $200 million from the SoftBank Latin America Fund, becoming the eighth largest "unicorn" in the region.
Earlier, Mercado Bitcoin received $37.4 million to expand its presence in the markets of Latin America.
The cuts were also announced by Bahraini cryptocurrency exchange Rain Financial, according to Bloomberg . The layoffs will affect "staff from a number of departments," the sources said.
2TM Group, the parent company of the Brazilian cryptocurrency exchange Mercado Bitcoin, announced a layoff amid the unfavorable situation in the global economy. CoinDesk writes about it .
"The changing global financial landscape, rising interest rates and inflation have had a major impact on technology companies," the statement said.
The company did not specify the number of laid-off employees. Its representatives noted that "the scenario requires adjustments that go beyond cutting operating costs." According to the publication, we can talk about 86 positions.
In December 2021, 2TM Group closed a $50.3 million Series B extended funding round . Prior to this, the firm raised $200 million from the SoftBank Latin America Fund, becoming the eighth largest "unicorn" in the region.
Earlier, Mercado Bitcoin received $37.4 million to expand its presence in the markets of Latin America.
The cuts were also announced by Bahraini cryptocurrency exchange Rain Financial, according to Bloomberg . The layoffs will affect "staff from a number of departments," the sources said.
⁉️ How Tether continues to work stably against the background of cryptocrises without audits and reporting
Forbes has released a story detailing how, despite the crisis in the cryptocurrency market, its largest liquidity provider, Tether, has withstood several multibillion-dollar redemption runs, and whether competition from other stablecoins and regulatory pressure could shake the company.
in August the company hired the top five accounting firms BDO for the purpose of conducting a full audit. However, Tether does not plan to become a public company, nor does it expect any changes in its management structure.
Forbes has released a story detailing how, despite the crisis in the cryptocurrency market, its largest liquidity provider, Tether, has withstood several multibillion-dollar redemption runs, and whether competition from other stablecoins and regulatory pressure could shake the company.
in August the company hired the top five accounting firms BDO for the purpose of conducting a full audit. However, Tether does not plan to become a public company, nor does it expect any changes in its management structure.
Of more serious concern to the company's management is the general state of the cryptocurrency market, in which Tether is a key liquidity provider. Stablecoins are critical for active traders, but the crypto winter has seen Tether's market cap drop by more than 25%.
The situation is exacerbated by the fact that much higher interest rates now offer traders numerous alternatives, besides cryptocurrencies and DeFi, to store idle cash reserves. USDT returns on major crypto exchanges are currently averaging 2%.
If the cryptocurrency recovers, Tether will likely see other competitors vying for its place. In addition to USDC, which already has 29.8% of the market and is favored by Wall Street firms such as BlackRock and BNY Mellon, megaexchange Binance itself has created its own stablecoin, BUSD. Additionally, there is the possibility that at some point a major FDIC-insured bank or central bank will offer its digital dollar.
The situation is exacerbated by the fact that much higher interest rates now offer traders numerous alternatives, besides cryptocurrencies and DeFi, to store idle cash reserves. USDT returns on major crypto exchanges are currently averaging 2%.
If the cryptocurrency recovers, Tether will likely see other competitors vying for its place. In addition to USDC, which already has 29.8% of the market and is favored by Wall Street firms such as BlackRock and BNY Mellon, megaexchange Binance itself has created its own stablecoin, BUSD. Additionally, there is the possibility that at some point a major FDIC-insured bank or central bank will offer its digital dollar.