Latest Analytics Shows 64% Of Controversial Stablecoin USDt Supply Controlled by 119 Addresses
Tether’s stablecoin ‘USDT’ continues to dominate this segment of the crypto market according to the latest statistics. However, questions on its decentralization inadequacy has been a common critic topic against the project.
Some analysts have gone ahead to term the USDT coin as the ‘most controversial’ cryptocurrency in the current market. It is also notable that Tether, the USDT parent company, is not a newbie to lawsuits with its latest being a $1.4 million for alleged market manipulation which led to the December, 2017 bull run. Tether’s recent linking to the paradise papers which basically shows the firm is the same with Bitfinex added to the list of controversies.
Despite the shortcomings, Stats show that Tether’s star has been shining over the course of 2019 compared to peer cryptocurrencies. The USDT transaction volumes in the past week hit a high of $3.5 billion; this is a significant figure given most coins are still struggling below the $100k mark. USDT investors also seem to have confidence in the coin given its average HODL period stands at 3 weeks.
However, Tether’s decentralization is still in question as the stats revealed that 119 addresses control over 64% of the network; this translates to around 22 million USDT for each address. It therefore follows that the USDT ecosystem may actually be ‘centralized’ as most of the control lies only within 119 addresses.
That said, 2019 has generally been a good year for the USDT as it not only maintained but also increased its market share in the stablecoin demand market. Its main competitor the ‘USDC’ is yet to make as significant milestones to get to Tether’s USDT recognition level.