Launched in 2015, Tether has faced many controversies, started as a dollar-backed cryptocurrency later changed its backing to include loans to affiliate companies. According to Coin Metrics data, over $1.1 millionTether is held by 300 addresses. Tether is available on many big crypto exchanges for trading.
According to the Bloomberg, report, Tether has been accused of covering up losses and co-mingling clients and corporate funds. On the other hand, Bitcoin is widely held by investors. Around 20,000 addresses have $1 million or more bitcoins. This much-concentrated ownership of Ether raises the risk of price swing of cryptocurrency, which is already highly volatile. CoinMetrics data also shows that Tether with a market capitalization of $4 billion most of the trading occurred on just two exchanges. 40% and 80% of total trading happened on Binance and Huobi, respectively. Bitfinex and Bitrex together hold $368 million worth of USDT.
The few central players who have major control over the cryptocurrency can swing its prices, and it would be in their interest to do so. The world’s largest exchanges, such as Malta-based Binance and Hong Kong-based Bitfinex, owners also issue Tether. Brokers who cater to Chinese traders also use this cryptocurrency, which makes them among top players who own Tether. Previously Tether has been accused of “printing” Tether and sending it to exchanges to buy assets.
Extremely centralized holding brings the risk of extreme volatility in the price of the coin when a large amount of trading occurs from these whales it could affect the market and investors of the USDT.
Tether is planning to expand its market by making it available on other crypto exchanges like OKEx, OKCoin, BTSE, BTCTrader/BtcTurk, RenrenBit, and Sideshift AI.
