Tether has withdrawn almost 25% of its tokens from circulation

19 Oct, 2018
by Arthur Sillers
Tether has withdrawn almost 25% of its tokens from circulation

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.

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.

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.

Read more- Biggest holders of Tether include Binance and Huobi , Whale moves $80 Million in Tether (USDT)

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