After Bitcoins (BTC), is this is the right time to buy Tether(USDT)?
For those of you who are following the cryptocurrency markets today would notice that the markets are completely green but Tether is down by almost 5-6%. The reason for Tether being down is because of a fake news which went on Viral on social media. According to the news, Binance was planning to delist Tether as it turned out to be a scam. Another contributing factor to Tether’s price drop is due to banking problems faced by Bitfinex.
It didn’t take long for the cryptocurrency community to bash Tether. Crypto Twitter has been merciless to Tether. Both Tether and BitFinex have been called as scams.
SEC: "We believe the Bitcoin markets are showing signs of maturity. An ETF is on the horizon."
Tether and @bitfinex "Hold my beer"
— Phil⚡️ (@PhilCrypto77) October 15, 2018
Traders are increasingly questioning their faith in the cryptocurrency world’s most important dollar peg https://t.co/FxklmnBx5Z
— Bloomberg Crypto (@crypto) October 15, 2018
But this is not the first time Tether has dropped from it’s pegged value. In August 2017, Tether went on it’s all time low of $0.91, which was also largely due to banking problems faced by BitFinex. But what happened afterwards is interesting to note. In around 20 days, Tether was back to it’s original value of $1 giving investors 9% returns.
And this is what is happneing in the current market. Tether has gone down and analysts predict it will be back up again. In fact, it has already started showing signs of recovery.
Problem with Tether
Tether although a noble concept is criticized for not being open about it books. Bitfinex, the parent company behind Tether, claims that each unit of Tether is pegged to its equivalent dollar value in the company’s reserves. But the company has largely denied independent audit firms from looking at Tether’s books. This has led the cryptocurrency community to speculate some foul play.
Some insiders also claim that Tether was used to manipulate the price of Bitcoin for the December 2017 boom.
Disclaimer: This is an opinionated article, and may not reflect the views of Blockmanity. This is not an investment advice rather an idea. The readers are requested to their own due diligence. Blockmanity won’t be held responsible for any loss of money.
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Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.