2018 has truly been the year of the Stablecoin. Just do a quick Google search and you will see for yourself what the sheer volume of news is as of now, on the subject. Tether is one project that encompasses a large part of that volume, though not usually for positive reasons. This week’s news on the plagued Stablecoin has been no exception.
What was supposed to be a Stablecoin by definition, meaning that it would consistently stick around at a $1.00 value, actually went one cent over on Monday. While at first, this may seem like an insignificant jump with Bitcoin moving in the thousands sometimes daily in the past, again, it is important to remember what Stablecoins are.
They are not supposed to move. They are supposed to have even pegs to even more reliable currencies. With Tether, that does not seem to be a future that lies ahead, especially given the project’s reaction to its price volatility being eliminating 500 million of its coins last week.
What is perhaps even more telling is the ongoing relationship between the Crypto exchange, Bitfinex and the Tether project, which no one seems to be able to definitively define. The latest update in their saga includes Bitfinex’s communications director basically suggesting that no other market for Tether matters other than what Bitfinex provides. Is there, then, collusion between these two projects as industry insiders like Bitfinex’ed have suggested?
Even though it has not been completely proven, with statements like those mentioned above, the possibility is starting to seem more and more likely to be true. If Tether exits from other markets and sticks with Bitfinex, we can almost rest assured that it is. In the end, all of this is a good lesson on why Crypto projects should be researched as carefully, if not more carefully than stocks before you invest any of your hard earned capital into them.
By: BGN Editorial Staff