As reported by NewsBTC previously, crypto investors were in for a treat in the wee hours of Monday morning, as digital assets saw an unexpected influx (and a large one at that) of buying pressure, pushing Bitcoin above $7,000 for the first time in months.
Bitfinex paused deposits in fiat currency for "certain customer accounts" after they suffered some "processing complications". The only exception to this has been the USD-pegged stablecoin Tether (USDT), which fell by as much as 8%, as its crypto peers surged.
Amid this heightened nervousness about Tether's ability to maintain a peg with the USA dollar, and thus perform the task for which it was created, the last 24hrs has downtime at KuCoin start what appeared to a run on the Stablecoin, leaving it worth under $0.94 at times. Although we have been here before with public concerns over the stablecoin, the USDT panic yesterday was significant enough to cause the stablecoin to drop far under $1, reaching as low as $0.89. Tether LLC is operated by Bitfinex.
Disclaimer: This is an opinionated article, and may not reflect the views of Blockmanity.
The wannabe Tether alternatives are already gaining momentum. It can only be found out with a clear and transparent audit.
Although the memorandum was produced by a major Washington D.C. law firm, it does not absolve Tether of any of the circulating rumors. Ties between Friedman LLP and Tether were dissolved, only furthering the skepticism surrounding USDT. According to cryptocurrency analysts, this statement could go a long way toward stabilizing USDT. Whether this is due to auditor resistance or Tether seems up for debate, but regardless, the situation has only fanned the flames of investor uncertainty. During his time, he commented that the only reliable and honest exchanges are the ones like Bitstamp which aren't linked to Tether. Tether has a total market cap of $2.45 billion and $5.84 billion worth of Tether was traded on exchanges in the last 24 hours. At the time of writing, the price has since been "normalized" again to approximately $ 6,600, according to data from CoinMarketCap.
Cryptocurrency exchange Bitfinex has just announced a new process for depositing fiat currency after the platform halted the service in recent days. In the last seven day interval, Tether is -1.27% against the American dollar along with a movement of 0.36% in the past hr.
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