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Is Tether (USDT) about to get untethered again?

04 Nov, 2018
by David Robb
News
Is Tether (USDT) about to get untethered again?

After recovering from the significant price plunge that happened a few weeks ago, Tether may be struggling to keep its dollar peg once again. In the last 24 hours, the token has dropped as low as $0.95 on some exchanges.

While this isn't a drop as big as the one that USDT saw in October, 5 percent is still a major price change for a so-called stablecoin. A number of factors may have affected this abnormal fluctuation.

Firstly, several rival fiat-backed tokens have recently been launched and subsequently listed on major exchanges. Gemini dollar (GUSD) and Paxos Standard (PAX) are two of Tether's newer stablecoin competitors, and both have received a seal of approval with listings from OKEx and Huobi, amongst others. This could be affecting demand for USDT.

Read more: Day of the stablecoin: OKEx lists four fiat-backed tokens

Others are pointing to Bitcoin Cash's recent spike as a potential cause of the price drop, suggesting that BCH-USDT pairs on low-liquidity exchanges might be disproportionately affecting the price. Coinmarketcap's usefulness as a data source was even called into question. 

Image from Gyazo

Read more: Tether (USDT) still hasn't regained its dollar peg

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Read more about:Tether (USDT)

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I think Tether is one of the most stable coins now. So, nothing bad will happen.
03 Dec, 2018 - 17:34

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