Lack of Transparency to Blame for Tether’s Loss of USD Peg: Novogratz

Five days since losing its U.S. dollar peg, fiat-backed cryptocurrency tether (USDT) continues to trade at a discount to its supposed $1.00 valuation. Defenders have largely chalked up the markdown to FUD, arguing that supporters of other “stablecoins” are launching a coordinated assault on tether, which has long dominated this market niche. However, billionaire investor and cryptocurrency bull Mike Novogratz says that USDT’s woes are the fault of its issuer’s lack of transparency. USDT/USD | Kraken | Source: TradingView “I think Tether didn’t do a great job in terms of creating…

The History of Stablecoin Tether and How It Has Lost Its $1 Peg

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, you should conduct your own research when making a decision. Tether, a cryptocurrency that has long been a point of contention in the community, has seemingly been uppegged from the US Dollar. The stablecoin, by virtue of that very description, was linked to the US Dollar at a 1:1 ratio. Simply put, every Tether token that was minted had to be backed by a US Dollar. Concerns around the validity of Tether’s reserves of…

Bitcoin Explodes to $7,500 as Tether Loses USD Peg

Bitcoin price surged 9 percent within hours as Tether started losing its grip on the USD-peg. The BTC/USD pair closed yesterday on a modest 2 percent gain in pennant formation action following the recent drop. Nevertheless, the couple started picking momentum during the early Asian trading session and jumped to as high as 7800-fiat from its previous low near 6300-fiat. At the same time, Tether’s USDT/USD pair lost came crashing down below 0.95-fiat at the beginning of the Asian session. It eventually formed lower lows towards 0.85-fiat, before correcting higher…

Drivechain: The Two-Way Peg Solution for Bitcoin Scalability

As the world is becoming more and more aware of cryptocurrencies, their popularity and adaptation are also on the rise. The rise in adoption has also brought to light the inefficiencies with regards to keeping up with the increasing demand. While bitcoin blockchain stills look to be healthy for now, but with the rising demand, it may soon turn vulnerable and probably may come to a halt. This scalability issue of the bitcoin is due to a variety of aspects of how the Bitcoin protocol works. As Bitcoin uses blocks…