2018-10-15 17:44 |
The stablecoin USD Tether, USDT, has dropped significantly against the asset that it is meant to be pegged to over the past 24 hours. The drop has resulted in a significant premium to the assets listed on the Bitfinex exchange as these are priced against USDT as opposed to USD. While USDT typically remains in a range of 0.99 to 1.01 when compared against USD, it has reached a low of around 0.85 today on the Kraken exchange. Price has since come back up and is trading at 0.92 when compared with USD.
Many theories are circulating for why the drop has occurred. There has been confirmation that there is a fake email circulating impersonating the Binance administration. The email labels USDT as a scam and note a decision to delist USDT.
Fake Binance EmailOther analysts are suspecting some insider trading or manipulation by Bitfinex which are closely tied with USDT. The same executives manage the company behind USDT as those managing Bitfinex, and both companies have the same CEO.
Another theory is that large whales are dumping USDT into the market believing that the bottom is in, and switching into cryptocurrency. Regardless, it represents a risk at the moment to hold USDT with it losing its value against USD. If the cryptocurrency stablecoin operates as it should, its value should regain and become par with USD.
But USDT has a controversial background, and many believe that it will eventually collapse. Trading and investing is a risk-reward tradeoff. With USDT losing its value against USD and many theories circulating as to why traders do not want to take any unnecessary risks.
USDT USD Daily Chart – Source: Tradingview.com Key Takeaways: USDT is losing its value against USD reaching an intraday low of $0.85. This has resulted in a significant premium for assets traded on Bitfinex. Many theories are circulating why this is happening, but regardless traders do not want to take any unnecessary risks. If USDT functions as it is meant to, it should return to par with USD, but many are skeptical of the stablecoin and the controversial history surrounding it. DISCLAIMER: Investing or trading in digital assets, such as those featured here, is extremely speculative and carries substantial risk. This analysis should not be considered investment advice, use it for informational purposes only. Historical performance of the assets discussed is not indicative of future performance. Statements, analysis, and information on blokt and associated or linked sites do not necessarily match the opinion of blokt. This analysis should not be interpreted as advice to buy, sell or hold and should not be taken as an endorsement or recommendation of a particular asset.Dollar Pegged Stable Coin USD Tether [USDT] Drops Against the Dollar was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.
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