Tether Price Analysis: It Is Wise Not To Get Carried Away
A Substitute for the fiat currency on crypto exchanges all over the world, Tether (USDT) is one of the most widely traded coins in the crypto market. It is a brilliant crypto coin with a twist. Unlike all the other cryptocurrencies, whose values keep fluctuating outrageously on day to day basis, whereas Tether coins are designed for stability. History of this currency revels the fact that coin price has managed to stay near $1.
Stable prices have made this multipurpose coin instrument for the laying a bet on the direction of other coin moves. Most of the traders use it as a substitute for the dollar. And team Tether is raising hopes by making significant efforts. As they have mentioned it in their twitter announcement, they are bringing Tether and EOSIO together, to unlock the true potential of blockchain based stable coin.
Recently it has been a topic of hot debate everywhere. Mainly because it has been under investigation by the US Justice Department for possible trading manipulation.
Currently, on June 8, 2019, at 10:49:22 UTC, Tether is trading at $1.01 with 0.22% rise in the last 24 hours. Very subtle fluctuation when compared to rest of the coins in the crypto market. It has constantly maintained its rank amongst the top 10 cryptocurrencies, with a current Market Cap of USD 3,256,931,705 and 24h volume of USD 17,313,225,650. In addition to it, circulating supply for the coin is 3,238,933,772 USD. At the time of writing, the Return on Investment has shown a 0.56% gain. Seems to be an exciting scenario to buy this currency.
Tether Price Prediction:
In spite of the modest total value of $3 million, compared to other coins, Tether has played a great role in a cryptocurrency exchange. According to data compiled by Coinmarketcap, it is the second most traded digital currency since April.
Investors remain a skeptic. Since beginning Tether has repeatedly said that its every coin is backed up by one dollar. In the year 2019, they changed their statement as we fully back up all the coins by US dollars. The company has not provided convincing evidence of its holding to the public. Its relationship with Bitfinex, one of the largest cryptocurrency exchanges is also questionable.
The lack of transparency along with perceptible loss of $850 million is what making Tether questionable despite all their efforts. If authorities find any evidence of misconduct by Tether or if investors lose their faith in the coins ability to trade in for $1, the currency will quickly lose its value.
Conclusion:
Although, only time will tell if the current disputes represent a fixable bug or a growing concern. No matter the odds, Tether has successfully maintained its reputation to not very away from $1 price.
It may not be an investment in itself, but the price stability makes it less risky compared to other highly fluctuating crypto coins.
