The Rise and Fall of Tether – What Do the Experts in China Say?
Tether (USDT) has been prominent in media headlines lately. At issue is how stable and secure the token, a USD-pegged crypto-asset supposedly backed by dollar reserves, really is. BitKan’s K Site (accessible via the mobile app) offers a number of opinions from key opinion leaders (KOLs), influencers and other experts from the Chinese market. Read on to see some selected takes from some of the most popular K Site members, which offer some interesting insights.
This is a press release provided by BitKan
USDT isn’t meant to be an asset for investment — it represents fiat money value that moves in and out of more volatile assets like bitcoin and ethereum. While it’s the best-known “stablecoin”, or less-volatile crypto, several others have appeared in the past year and more are planned, representing the USD and other national currencies.
Is Tether’s claimed 1:1 USD peg stable enough to be useful to traders? Have recent claims concerning its price volatility (it reached 92 cents at one point) and doubts over a lack of published audits made it less useful? Read on.
What Are Your Thoughts on Tether’s Recent Turmoil?
The USDT is fundamentally sound.
1. The USDT has large volume, and is spread out among a large number of users. This dispersion is a form of security in itself;
2. The company behind the USDT has the means to back redemption of USDT;
3. The redemption of USDT, in theory, does not require 100% reserve;
4, the fall in prices of stablecoins by 6% is not a big deal;
5, The USDT has no government endorsement, purely rely on corporate credit. Whether it will survive in the competition between stablecoins is still unknown.
My greatest insight from this incident is not that the centralized stablecoin is accompanied by the risk of additional issuance and regulation. Rather, I realized that in the crypto community, everyone is competing to see who can get out of their positions the quickest.
What Is the Outlook for Stablecoins in General?
The so-called beliefs in the crypto community is all about redeeming fiat currency for profits in the end. This is the case with USDT, as is Bitcoin. When a new alternative asset is found, it would not be surprising to see bitcoin go down the footsteps of USDT.
@量子学派 (Quantum School)
The number one USDT fell to the bottom. This may have been the case all along. The USDT issuer Tether has been a problem since the beginning… but this is a necessary process for any stablecoin. All stable coins must accept the test of time. The current USDT has basically returned to near its original value. The leader of stablecoins have not yet collapsed.
The K Site blockchain media and interaction platform is accessible via the BitKan mobile app. More information about BitKan and download links to the app are available here.
BitKan was founded by four former employees of Huawei Technology in 2012. The startup has rapidly scaled to become one of China’s leading providers of cryptocurrency data and services, with recent expansion into Singapore, Tokyo and Hong Kong.
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