What's going on with Tether? Trading as low as $0,86, 'a lot of volatility ahead'

15 Oct, 2018
by Jelmer van der Dussen
Breaking News
What's going on with Tether? Trading as low as $0,86, 'a lot of volatility ahead'

Bitcoin saw a pump up to 22 percent on Monday as a result of traders rapidly leaving Tether. There are more and more concerns about the health of the stablecoin which has led to a massive Tether sell-off.

Currently the 'Bitfinex premium' on Bitcoin is about $400. Tether itself is now trading for $0,96, $0,04 lower than the $1 that the stablecoin should represent. On the USDT/USD market on Kraken, Tether is trading as low as $0,86, a new all time low. 

Traders abandoning Tether and jumping into Bitcoin has sparked a rally in BTC, that is currently up 9% in the last 24 hours. People are concerned about the financial health of Tether and many are afraid that Bitfinex, which shares a chief executive officer with Tether, also shares Tether's risk of insolvency.

With a large part of the trading volume in Tether, the future is uncertain, head of business development at exchange Luno, Vijay Ayyar, says in a comment to Bloomberg. "If traders start to flee Tether, it’s a potentially precarious situation, since it accounts for 20 percent of total volumes globally. It basically implies a lot of volatility ahead", Ayyar says.

Read more: Bitfinex premium on BTC up $400, USDT drops over 3% as markets pump on Monday

Timothy Tam, CEO of cryptocurrency research firm CoinFi, doesn't think this will affect the market in a negative way. He says the rumors are 'probably a bit of paranoia'. "I believe this will all clear up relatively soon."

With more stablecoins available on the market, such as the one from the Gemini exchange and regulated stablecoin Paxos, available on Binance, there are more alternatives for Tether on the market than ever before.

Read more: Not so keen on Tether? Here are the other stable coins currently available

Follow Chepicap now on Twitter, Telegram and Facebook!

Read more about: Tether (USDT)


Is Tether going to survive this?

(28 votes)

Add a comment

Check out the latest news

You will be logged out and redirected to the homepage