Algorand Blockchain Becomes The Fifth Blockchain To Add Controversial Tether’s USDT Stablecoin
Algorand blockchain became the 5th blockchain network to support Tether' stable coin USDT. The news was announced by Tether themselves on Wednesday. The other four blockchain networks that support dollar-pegged are Ethereum, Tron, EOS, Omni.
Paolo Adronio, the chief technical officer at the tether expressed his joy on stablecoin's fifth blockchain association. He said that the partnership would further the cause of interoperability in the blockchain space. He said,
“Extending Tether into the Algorand ecosystem is a fantastic opportunity for us to further contribute to blockchain interoperability and collaboration. Algorand is an excellent team very much aligned with ours; we are proud to take this next step with them. We are very excited about the potential this enables for other projects in the decentralized ecosystem and we eagerly await working closely with many of them in the future.”
USDT Continues its Dominance in the Crypto Space Despite Recent Debacles
USDT was launched as RealCoin back in 2014, as a dollar-pegged stable coin. In the subsequent years, it became quite popular on a number of crypto exchanges as a form of liquidity. It became an obvious choice given the number of complexities involved in providing fiat withdrawals.
Being the obvious choice of liquidity it's trading volumes have been fairly high only falling behind Bitcoin. In the last 24 hours, the trading volume of USDT is neck to neck with Bitcoin amid the market sell-off, leading to a massive decline in prices of most of the cryptocurrencies.
However, despite dominating the stable coin market with over 90% market share, USDT has been marred into controversies from the beginning. First, it was Tether's dubious claims over its reserves, which was recently debunked when they admitted that only 70% is backed by Fiat US dollars. While the rest 30% is based on trust just like Federal reserves.
This admission was made in court when Tether was slapped with a lawsuit by the New York Attorney General. Tether and Bitfinex are owned by the same firm iFinex, where Bitfinex exchange tried manipulating its yearly losses worth $700 million through their USDT reserves. They were caught when they tried conducting an IEO for over $1 billion USDT. Later in the court, they also admitted that among the 70% of the reserve a certain percentage of it is also kept in Bitcoin. This came as a shock to the public since it was against the basic definition of stable coins.
Everyone thought this would be the end of the road for a stable coin, but since it's used as a fiat on exchange and does not come out of the exchange ecosystem, investors don't feel the need for a switch. But, despite all these accusations, allegations and lawsuits Tether does not seem to have learned its lesson. Recently, during a chain swap from Omni to Polinex, Tether printed $5 billion worth of USDT by mistake. However, they were quick to realize the mistake and burned all the USDT tokens generated by mistake.