The crypto market has been fluctuating in the past few days, with prices going up and down awfully. However, amid all this drama, the USDT issuer (Tether) has received a lot of praise from veteran crypto investors.
In a recent blog post, Buterin said that he expected USDT to be “somewhat successful.” But that he “did not expect it to be this successful.” He said he believes Tether has “played an important role in the ecosystem.”
Buterin’s comments come as no surprise to those who have been following the development of Tether. Tether’s stablecoin (USDT) has been one of the most talked-about coins in cryptocurrency over the past year.
The USDT was launched in 2014 and is pegged to the US dollar. The coin is issued by Tether Limited, a company based in the British Virgin Islands.
Despite the controversy, Tether has continued to grow in popularity. The coin is now the second-largest cryptocurrency by market capitalization, behind only Bitcoin.
Buterin’s comments are a positive sign for the future of Tether. In addition, his belief that the project has exceeded his expectations is a good sign for the future.
Possible Devastating Consequences
In a recent post, popular Ethereum community member, Ohtamaa, admitted that it would take a massive amount of money to put Tether in an FTX-style liquidity crunch. But he warned that it’s not impossible and that the consequences could be devastating.
Ohtamaa’s warning is timely, as Tether is currently facing renewed scrutiny from regulators. The New York Attorney General’s office is investigating Tether for possible fraud, and the Commodity Futures Trading Commission (CFTC) has sent subpoenas to Tether and its affiliated exchanges.
The investigation is still in its early stages, and it’s unclear whether any wrongdoing will be uncovered. But the mere fact that it’s happening is a reminder of the risks associated with Tether.
USDT is the most popular stablecoin. As a stablecoin pegged to the US dollar, USDT is not subject to the same inconsistency as other cryptocurrencies. This makes it a haven for investors who want to protect their assets from market swings.
USDT is widely available on exchanges, which makes it easy to buy and sell. Also, there’s always a liquid market for it as fiat US dollars back the USDT.
Thus, it has garnered lots of credibility over the years. Hence, it is a more trustworthy option than some other stablecoins on the market.
It has been an eventful year for Tether (USDT). In January, the stablecoin surpassed Ethereum in daily trading volume. Then, in February, Tether’s market capitalization exceeded $1 billion.
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