Tether (USDT Token) Stablecoin Saturates Kraken Exchange Market
Tether Saturates Kraken Exchange Market
According to analysts, the Kraken exchange is experiencing a flood of Tether (USDT) into a massive wallet held by the exchange. It should be no surprise why Tether would be interested in entering the Kraken market. While the USDT price continues to crash and public trust in the exchange keeps falling, Kraken is one of the few places where Tether can be exchanged directly for United States Dollars.
The amount sent to the wallet is significant, and has been growing relatively quickly this month. Amid controversy regarding the public faith and legitimacy of Tether, the Kraken wallet holds around 47.8 million in the stablecoin, making it one of the top-ten wallets in possession of the USDT cryptocurrency. This is double the amount that was in the wallet just two weeks ago on October 7th, when the Kraken Tether wallet only held half the amount it does today—a measly 21.6 million USDT.
Speculation surrounding the outlying number is that the exchange’s users are looking to trade out of USDT in significant numbers, exchanging their Tether coins for stable United States Dollars. This should come as no surprise to the news-savvy investor, as Tether has had a very, very rough couple of weeks. Breaking its peg with the United States dollar, controversies surrounding USDT drove the price per coin to an all-time-low of around 92 cents per unit.
Tether’s New Effort
Originally, the whitepaper published for the Tether stablecoin project outlined that users should be able to exchange their USDT for U.S. dollars with relative ease, simply sending the coins to the Tether Ltd. company in exchange for a dollar amount which is supposedly held directly by the corporation. But recently, reports surfaced that users have been unable to trade their crypto for fiat money using the whitepaper’s outlined process.
This is one of the reasons that it is so hard for traders to find an exchange that offers a pairing of USDT/USD. Because the currency is supposed to be pegged to the USD originally, it does not make very much sense for Tether to be paired with the United States Dollar. But more importantly, exchanges understand that Tether is supposed to have their own version of a crypto-to-fiat conversion process, as outlined in their whitepaper. Consequently, very few crypto exchanges have such a paring available.
But because Tether is not currently allowing users to convert their USDT to its dollar amount, holders of the tokens seem to be reaching out to Kraken to fill this same purpose. Kraken has been clear, though, in its belief that Tether is unlikely to crash in price, especially as a result of the recent oversaturation of the Kraken wallet with the coins.
The future of Tether is currently up in the air. Investors are unclear on the ability of the coin to regain its stability, which will prove problematic for the continuing value of the stablecoin. Additionally, the work of other stablecoins to jump Tether might be the company’s undoing.