New Diar Report Highlights The Stablecoins Moving Forward Amid New Controversies With USDT
Stablecoins Move Forward Amid New Controversies With Tether
Tether (USDT) has been once again involved in a controversy regarding the funds it has to back the USDT released to the market. According to Diar, a few days ago, Tether amended its definition for reserves. Now, Tether includes “cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties.” This is why there is an opportunity to invest in other stablecoins in the market.
Alternative Stablecoins Increase Their Presence
During 2018, several firms decided to release new coins to the market. Indeed, there are many other US-pegged stablecoins such as USD Coin (USDC), TrueUSD (TUSD), and MarkerDAO’s DAI that are offering solutions for those that do not trust USDT.
Although Tether has been affected by dubious offshore banking partnerships, US subpoenas, and other controversies, it remains the largest and most popular stablecoin in the market. Indeed, at the time of writing, Tether is the 9th largest digital asset with a market capitalization of over $2 billion.
In this case, stablecoins do not follow the ethos of decentralization that has been promoted by Satoshi Nakamoto and other crypto pioneers. In this case, stablecoins are highly dependent on financial institutions that cryptocurrencies aimed at eliminating from users’ lives.
MakerDAO’s Dai is a stablecoin that has been affected due to its stability fee increase to 350% from the beginning of the year. Now it stands at around 3.5%. There has also been a window of opportunity to purchase Dai at a discount rate on Coinbase. Each Dai was traded with a 6% discount on Stabelwire and traders used this opportunity to perform arbitrage trading.
At the time of writing this article, the second largest stablecoin in the market is the USD Coin, which is currently the 27th largest crypto. It has a market capitalization of $243 million, followed by TrueUSD with a market capitalization of $205 million. TUSD is the 32nd largest digital asset.