According to Coindoo, Tether removed almost a quarter of their USDT token from the market as Tether fails to regain its dollar peg.
USDT, as a stablecoin, is designed to match the US dollar 1 to 1 in value an thus act as a kind of ramp on for investing in the crypto market from fiat. Unfortunately for Tether, last week following concerns over Tether and Bitmain (the exchange which has a close partnership with Tether) and possible insolvency, Tether became unmoored and dropped to as low as 0.86, which caused massive market distortions, including a run on the price of Bitcoin.
I think Tether had more volatility than Bitcoin this week...Who’s the stable coin now?— Ran NeuNer (@cryptomanran) October 19, 2018
Tether has successfully gotten closer to its dollar peg, but according to Coinmarketcap, is still trailing at around $0.98 at the time of writing. Tether has quietly been taking tokens out of market circulation for some time, but given that this most recent pull is almost 25% of their market cap, other stablecoins are looking more and more competitive. Furthermore, Tether has yet to make good on its promises to mint new tokens, perhaps in response to instability, or at worst in anticipation of a collapse of Tether's value.
Tether is bitfinex. they can manipulate the tether price however they want. they're taking tethers "out of circulation" as free money. they bought them below $1 then redeem for $1. amazing scam. and just cuz deposits are turned back on doesnt mean they work. have you seen reddit?— Rick (@derrick198S) October 19, 2018
As opinions on Tether’s future are at a lull, other stablecoins like TrueUSD, Gemini, and Paxos are looking all the more competitive. These so called ‘regulated’ stablecoins look to improve on the model created by Tether by offering more transparency, more independent accreditation, and hopefully more stability.
As Tether continues to take its coins out of circulation these competing stablecoins are only closer to taking the place that Tether still has as the largest stablecoin by volume.