Tether (USDT) Stablecoin is Facing Stiff Competition in the Cryptocurrency Growth Cycle
Tether Is Being Phased Out of the Cryptocommunity with Stablecoin
Digifinex is responsible for offering tether (USDT), which has become incredibly well-known stablecoin in the industry, which is meant to help consumers to keep a relatively steady price. Instead, they have decided to pull out the token from the industry and replace it with their rival – TrueUSD by TrustToken. In the last 24 hours alone, Digifinex has managed to handle about $131 million in trading volume.
The co-founder of Digifinex, Kiana Shek, confessed that she’d been “looking for ways to get rid of USDT.” However, that does not mean that she is supporting any of the tokens. Referring to the decision to list it, she said:
“I simply don't believe in tether but I had no choice,”
When Shek discussed the way that they decided on bringing in TrueUSD, she said:
“Through my research, due diligence, and my communications with the TrustToken team, I have come to appreciate their commitment to industry-leading best practices.”
One of the other issues she brought up was how the team intended to comply with the regulations established by the U.S. Financial Crime Enforcement Network's (FinCEN).
Tether has basically decided to move away from trading pairs, using a stablecoin instead. However, since there are many stablecoins being launched now, and are still about to launch, they will probably have many tokens to compete with. Co-founder and COO of TrustToken, Stephen Kade, said,
“The risk from tether and the need for a new USD stablecoin is so great, which is why “exchanges have started trying to create their own.”
This is likely to be a reference to the recent dollar-pegged currency that Gemini suggested. Kade has called TrueUSD, “live and exchange-agnostic.”
TrueUSD was only launched in March, but the creators want to continue to launch products that have ties to fiat currencies as they progress. Even though this already sounds like a lofty goal, their ultimate mission is to eventually tokenize any type of asset. Their token should be available to trade by 15:00 on September 17th in Singapore time.
At this time, Tether has not provided a comment. This could be the result of their negative reputation for over a year, since they have yet to successfully persuade enough investors that they actually have the amount of currency backing their token that they claim. There are even allegations of printing money, but the value still stands at $1.00. The appeal of the currency has largely been the easy transition into fiat currency, but that has not been enough. Still despite the negativity, tether has held a place as the 8th most valuable cryptocurrency, based on their market cap.