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Crypto markets are hard to predict. It’s true. It’s doubtful that Satoshi (whoever he or she may be) would have anticipated the 2017 Bitcoin bubble. However, with so much now in play here and an excessive amount of wealth held by crypto whales and institutions, why are we–the majority of the crypto community–allowing the markets to be manipulated right before our eyes? Why aren’t we taking steps to stop the next market crash? In short, why is everyone waiting for Tether?

Since December 2017, the rather large and growing seed of doubt has been planted surrounding Tether. Specifically, its proof of funds and correlation to Bitcoin’s price rises and falls. Yet, the majority of the industry carries on undeterred. For those with half an eye still open, they tend to place the responsibility on Bitfinex. The mega exchange needs to be more transparent and, well, everyone’s waiting for it to be so.

But as Bryan Courchesne of Digital Asset Investment Management (DAIM) points out in a medium article, “Instead of waiting for verification, let’s move on from it and use other options. The industry could be improved by removing some of the doubt.”

When the bombshell dropped that there may not be enough dollars backing Tether, it caused a PR disaster. Tether may not have a regulatory burden upon it. But the rest of the industry can and should be on guard.

Top exchanges, for example, have certain tests, protocols, and requirements when deciding to list a new coin or token. “If Tether came along now, would an exchange operator approve it?” Courchesne inquires? The answer is somewhat doubtful.

“Imagine you approach an exchange to list a token with no proof of funds or legal backing, would the big exchanges even think twice? Of course not. The only reason that Tether holds such an important position in the cryptocurrency economy is because it was the first stable token in existence. It’s time to recognize there are now, other, better options.”

While users of Tether, for the most part, are undeterred by the speculation surrounding it, those who don’t use it seem to fail to see how Tether could affect their holdings. “Both groups should think again,” says Courchesne. “There is still further research and conclusions to be made in regards to the correlation between the issuance of Tether, movement of the coins to the Bitfinex exchange, and the price movement of Bitcoin.”

“I am proposing investors, creators, and influencers ask for exchanges to delist Tether pairs. We should not be willing to wait any longer to make a change that is needed or sit idly by and watch Tether continue to grow while questions go unanswered.” Courchesne’s approach sounds a little drastic, but it might be the rude awakening the market needs.

Tether, after all has more than twenty times more volume than the second most popular stablecoin. Exchanges may not like the idea of delisting Tether pairs, he says, since they may fear it will harm trading volumes or revenues. But there are plenty of other, more stable stablecoins, like TrueUSD that (unlike Tether) comes with escrow accounts and monthly reports. He argues:

“Simply trading out of Tether into something else more stable would hold volumes.”

And TrueUSD is far from the only solution. Other options could include fiat or another stablecoin. Delisting Tether pairs, he says, would clear out the unforeseen risk and “black swans” that could appear on the horizon (have in the past) and hold drastic consequences for the markets.

Despite what Bitfinex has so far said in support of Tether, the rhetoric does not seem to be backed by action. While Bitfinex is so heavily invested in Tether, it may fight tooth and nail to ensure nothing negative happens, the doubts remain. We don’t have to wait for Bitfinex or Tether. The community can–and must–take action first.

“Investors have the ability to make changes now in order to avoid upcoming and potentially adverse findings,” he says. After all, if an altcoin has a legitimate product, the goal isn’t getting it listed in every pair possible. The goal is increasing adoption.

So, let’s stop waiting for institutions to validate the space and tell us everything’s okay when we have more than enough experienced and capable professionals who can take action–and responsibility–now. The change from Tether to another stablecoin would most likely go unnoticed by those outside of the industry. And for those within, well, it should help them sleep a little easier at night.

The post Why Is Everyone Waiting for Tether? appeared first on NullTX.

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