Despite Recent Vows Tether’s USDT Market Cap Exceeds $4 Billion as Stablecoin Continues Onward
Tether has recently reached an all-time high when it comes to market cap, surpassing the $4 billion mark. They are the 7th biggest crypto when it comes to market cap.
Analysts understand that Tether market cap is nothing similar to any other coin. Tether is only 0.4% of a total crypto market cap, so it seems legit. In order to get $100 USDT, you have to deposit $100 real U.S. dollars and then 100 completely new tokens will be issued, which never existed before on the market.
The recent rise in the market cap can be attributed to the issuance of ERC-20. What’s interesting is that the rise has been dramatic with the stablecoin gaining over a billion in less than a few weeks.
The 24-hr trading volume of Tether is also reaching all-time highs. The surge in Tether’s trading volume in the 24-hour period is significant given that recent negative events involving the Bitfinex exchange had affected investor confidence.
Tether has been at the center of controversy. The NYAG has stated that Bitfinex wrongfully served New York residents throughout 2018, but a new legal filing by Bitfinex claims that these allegations are “misleading”. Now, Bitfinex’s general counsel Stuart Hoegner disputed the NYAG’s accusation that New York residents were using the platform for longer than previously stated by saying it
“contains a number of inaccurate and misleading assertions”.
Bitfinex was facing a hard time in the first half of 2019 when one of its payment processors did not pay it. Crypto Capital, the payment processor, had its funds seized by the authorities because it was linked to illegal activities. In order to continue its activities, the company decided to loan the money from Tether, which shares the same owners of Bitfinex.