Crypto’s Top Two Most Controversial Projects: Tether (USDT) and Bitcoin Cash’s Ecosystem Effects
There are two important but controversial projects in the cryptocurrency market, Bitcoin Cash (BCH) and Tether (USDT). During the last days, cryptocurrencies experienced a hard drop that affected the whole market. Clearly, if the space wants to improve, these two projects will have to search the way to behave adequately.
Bitcoin Cash entered the market as a fork of the original Bitcoin chain. Since that moment it has been a very controversial project. On November 15, the Bitcoin Cash network experienced a hard fork in which Bitcoin ABC and Bitcoin SV are trying to continue as the new Bitcoin Cash chain.
Until now, there is no winner between these two. At the same time, the BCH community has been divided. Jihan Wu, CEO and founder of Bitmain, and Roger Ver, CEO of Bitcoin.com supported the Bitcoin ABC chain, while nChain’s Craig Wright and Coingeek’s Calvin Ayre backed Bitcoin SV.
Since that moment, both sides have been trying to sustain mining operations for both chains, something that might have resulted in these parties selling cryptocurrencies they stored.
Additionally, Tether is also a company that must have transparent and clear operations. Back in June 2018, a study released by John Griffin and Amin Shams, Tether was used to stablizie and manipulate Bitcoin prices. John Griffin is a University of Texas professor that is known for flagging suspicious activity in the VIX benchmark.
Now, a few days ago, the United States Justice Department is investigating whether the bull run experienced by Bitcoin was fueled by manipulation related to Tether. Tether is a stablecoin that is supposedly backed 1:1 by the US Dollar. Nevertheless, the company behind Tether has always shown some issues to prove that they have the necessary amount of US dollars to back all the USDT in circulation.
The cryptocurrency space will have to deal with these two problematic projects if it wants to succeed. There are many other cryptocurrencies that have good and transparent proposals to improve the ecosystem.
At the time of writing this article, Bitcoin is being traded close to $4,400 dollars and it has a market capitalization of $76.12 billion dollars. XRP, the second largest crypto has a market capitalization of $16.83 billion dollars and each XRP coin can be purchased for $0.417 dollars. Most of the virtual currencies in the market are operating negatively in the last 24 hours.