Tether to Lost $1B of Market Cap in a Month

As reported, since the beginning of October, Tether has burned about 990 million tokens
01 November 2018   375

Against the background of active competition of stablecoins, a massive outflow of funds from Tether continues - since the beginning of October, the capitalization of the USDT token has decreased by more than $ 1 billion, CCN reportes.

On October 30, Tether Limited destroyed 100 million USDT, reducing the total volume of tokens to 1.8 billion. Another 50 million USDT were destroyed the next day.

In total, since the beginning of October, Tether has burned about 990 million tokens. It is noteworthy that at the begining of November 2017, about 450 million USDT were in circulation totally. With the current price of just under $ 1, token capitalization has decreased over the past month by more than $ 1 billion and more than 37% in history.

On October 31, Tether, which was at eighth place in the CoinMarketCap for a long time, moved down one line. At the time of publication, Monero is separated by a little more than $ 50 million.

Note that on  November 1 Tether sent 100 million USDT tokens to the Bitfinex exchange account.

While Tether is experiencing obvious difficulties, its competitors in the face of TrueUSD, USD Coin and Paxos Standard are showing rapid growth. The total capitalization of these steablcoins to date has exceeded $ 400 million. And although this doesn’t compare with Tether's loss of $ 1 billion, this fact suggests that the USDT is losing confidence due to the opacity of operations, problems with banks and dubious links with Bitfinex.

Tether to Updated the USDT "100% Backed" Policy

Now, “reserves ... from time to time, may include other assets and receivables from loans made by Tether to third parties"
14 March 2019   134

The USDT token linked to the US dollar, as was assumed until recently, is fully secured with hard currency. However, the latest revision on the website of the issuer of stablecoin of Tether company says that the situation is now different.

The 100% Backed section at Tether websites says: “reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities (collectively, “reserves”)."

At the same time, the company insists that each token is still pegged to the USD in the ratio of 1x1.

Earlier, Tether stated that all USDT coins are 100% secured by the US dollar. In part, these allegations at the end of last year were confirmed by the Bloomberg publication.

The new edition on the Tether website has already been commented on by users of Reddit. According to Toyake, you can now officially say that the USDT is not 100% guaranteed by the US dollar.