On January 10, 2020, Travala announced they will now accept Tether USDT stablecoin for payments on their portal.
Matt Luczynski, Travala SEO, made the announcement and reiterated the company’s goal of offering a wide range of payment options for its users. He said,
“Part of our mission is to provide our users with a wide choice of the most well known and used cryptocurrencies so it made perfect sense for us to integrate USDT as a payment option on Travala.com.”
In line with the firm’s objectives, it is now integrating the USDT payment option on its portal for users. Apart from Tether, Travala also accepts some other cryptocurrencies on its platform. The list includes their own AVA, Cardano, Stellar, Bitcoin Cash, Binance Coin, Litecoin, XRP, Ethereum, as well as Bitcoin.
Position of Tether in the market
Tether was introduced into the crypto market three years ago. According to the stablecoin, it wants to use its one-to-one ratio with fiat currency to prevent price fluctuations. When it was launched, traders and merchants were optimistic about the offerings of the stablecoin.
In the early days of Tether’s launch, merchants were hedging against volatility by accepting Bitcoin, Ethereum, Ripple, and converting to Tether. According to the operation head at Payment Source, Sean Mackay, the idea was to reduce the risks when there is massive price fluctuation on the more popular stablecoins. However, as it stands, merchants can now trade directly with Tether with no exchange or conversion necessary.
The stablecoin still faces controversy in the market
Despite the firm’s efforts to make Tether more reliable, the stablecoin is still facing some major challenges. In early 2019, Letitia James, a New York Attorney, filed a court order against Tether Limited. Tether was accused of scheming with iFinex over the use of Tether’s reserve funds to cover about $850 million loss of client’s funds from the Bitfinex Exchange. The charges were made against Tether’s claims of stability on the use of its USD reserves.
But despite this legal issue, Tether has continued to do well in the market. They are still rated the 5th largest in the market, based on market capitalization. It also has one of the highest monthly and daily trading volumes in the market.
Currently, USDT daily trading volumes are around $26.5 billion, with Bitcoin’s at $22.5 billion, as stated by CoinMarketCap.