Not so long ago, the Tether coin reigned supreme as the undisputed champion of the stablecoin galaxy.
Suddenly that appears to be changing rapidly.
Digifinex the Singapore-based digital assets exchange revealed that it will replace the stablecoin on its platform. They will dump USDT in favor of the TrueUSD of TrustToken. This is only the latest assault on the eighth largest cryptocurrency by market cap Tether and its besieged stablecoin.
Tether Overstated US Dollar Reserves?
There have been persistent accusations that Tether intentionally overstates its USD reserves. In fact, a growing number of industry insiders doubt it really owns enough dollar reserves to make good on its promises. They are required to have enough dollars to cover the more than 2.7 billion USDT tokens that circulate. This is because these stablecoins are pegged to the United States dollar.
Others continue to suggest that it manipulates the digital assets’ exchanges by carefully timing when it issues its USDT tokens.
As a matter of fact, these suspicious timing events have caused a great deal of skepticism in the space.
Misrepresentation Claims Spark the Digifinex Delisting
Kiana Shek co-founded Digifinex. Sh nearly accused the team of not having sufficient dollar reserves to cover its USD-backed tokens. She shared that the exchange has sought out a means of delisting Tether tokens for many months.
It will be called fraud if the team simply conjured up its USDT tokens without sufficient reserves backing them. The problem for transparency on the issue is that third party audits do not happen with the USDT. Then there is the troubled Tether connection with Bitfinex. This was uncovered by the document dump from the Panama Papers. The problematic relationship upsets a great number of short-term traders and longer term investors.
Meanwhile Upstart Rivals in the Stablecoin Galaxy Are Growing
The real danger to Tether and its USDT is that many upstart rivals are crowding its traditional turf. Over the next several months, even more stablecoins are slated to reach market and challenge this Goliath of the stable-verse. The first stone that really hit home was the Digifinex one. This top 20 rated digital assets exchange is the first one to drop Tether for a rival. The future looks grim for USDT as other stablecoins still are waiting and watching for their turn to carve out a piece of the Tether coin pie.
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