Crypto Community Spotlights Kraken Exchange After Tether and Noble Bank’s Troubles
Tether is again being scrutinized by the cryptocurrency community after what happened with Noble Bank that had dropped Bitfinex and Tether as clients. And indeed, Tether (USDT) has experienced a selling spree on the cryptocurrency exchange Kraken. USDT moved down to $0.95 per coin, increasing speculation around Tether and what could be happening with this virtual currency.
Tether has not accepted to conduct an audit regarding its funds and how they are able to issue so many USDT coins. The community believes that the company does not have any resource to back all the USDT issued.
At the same time, on October 3, Bitfinex registered an important inflow of USDT which was growing on the Tether-rich list. However, its balance has also risen in just a few days to over 176.5 million USDT. Now, Bitfinex accounts for 199.9 million USDT.
In the past, several experts said that Tether was used to help Bitcoin during bear markets. And the concentration of USDT in Bitfinex has also triggered more speculation regarding this issue.
Furthermore, the Tether rich list showed inflows of USDT into other exchange platforms such as Huobi, Binance and Bittrex. All these exchanges play an important role in the virtual currency market handling millions or even billions of dollars per day. Of course, this has also created speculation around the price of the most important virtual currency in the market, BTC.
At the moment, Bitcoin is being traded stable close to $6,565 dollars and has a market capitalization of $113.6 billion dollars. Some experts believe that the market has already bottomed while others believe that it can continue falling.
In the last months, several crypto companies launched to the market their own stablecoins linked to US Dollars and other fiat currencies such as the GBP. The main intention is to create a more stable environment for cryptocurrencies, without so much volatility but without having to rely on fiat currencies.
One of these stablecoins is the one created by Circle, known as USDC. The cryptocurrency exchange Gemini has also developed its own stablecoin, the Gemini Dollar (GUSD). These coins would work on different platforms and facilitate stable transactions between companies and users.
If there are more stablecoins, there will be fewer consequences if one of the assets loses its peg with the stable currency.