Tether Attempts to Calm Instability Concerns
Tether recently released a statement attempting to calm the market concerning the seeming instability of its coin in the past 36 hours. The statement, made by Tether’s Leonardo Real, was:
“Tether is the leading provider of tokenized fiat currencies and is listed on many exchanges worldwide. We would like to reiterate that although markets have shown temporary fluctuations in price, all USDT in circulation are sufficiently backed by U.S. dollars (USD) and that assets have always exceeded liabilities.”
In June 2018, a report from Freeh Sporkin & Sullivan, LLP (FSS), based on a random date balance inspection and a full review of relevant documentation of bank accounts, confirmed that all Tethers in circulation as of that date were indeed fully backed by USD reserves.
The statement is the platform’s attempt to shift its dialog around the “stablecoin” which is eponymous as a trading pair across the platform’s exchange. When comparing Tether and Binance, it is clear that Tether comes in second in terms of reserves.
Further, Tether clarified concerning what led to the release of the above statement by indicating:
Tether’s USDT/USD pair lost came crashing down below 0.95-fiat at the beginning of the Asian session. It eventually formed lower lows towards 0.85-fiat, before correcting higher towards 0.90-fiat. The pair, however, continues to be far from its $1-peg that is creating a negative sentiment about its future in the crypto space.
As per a tweet on KuCoin’s official Twitter handle, the firm has announced that it will be temporarily suspending all USDT transactions across its platform. While there appears to be no major reason for this sudden halt, it seems as though this move is part of a larger wallet maintenance regime that KuCoin adheres to regularly.
Crypto exchange Binance, the world’s largest by volume, suspended withdrawals of the tether (USDT) stablecoin Monday morning during what it called a period of heightened activity.
Withdrawal functionality has since been returned, according to Binance’s website, which previously stated “wallet maintenance, withdrawal suspended” on the page for USDT. A customer service administrator on the platform’s English-language Telegram channel had previously said that the suspension was due to “USDT network congestion.
Essentially, the platform seems to be having trouble with the stable quality of its stablecoin.