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Tether Whales Control 80 Percent of USDT Supply: Coin Metrics Report

  • Alex Dovbnya
    📰 News

    Tether’s centralization problem has wide-reaching implications for the cryptocurrency market

Tether Whales Control 80 Percent of USDT Supply: Coin Metrics Report
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According to Bloomberg, 80 percent of USDT supply is controlled by about 300 accounts. Considering that Tether underpins much of cryptocurrency trading, deep-pocketed whales are able to easily meddle with the nascent market.

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Alleged market manipulations

The damning statistics were revealed by Blockchain analytics startup Coin Metrics, which has estimated that only 318 addresses hold more than $1 mln worth of USDT.

There is a gated community of crypto whales that are able to manipulate cryptocurrency prices at a whim. To put this into perspective, Binance, the largest exchange by daily trading volume, has 40 percent of its transactions conducted with the help of USDT.

John Griffin, a finance professor from Texas who earlier shed light on the Bitcoin-Tether connection, believes that many crypto exchanges have skin in the game.

The concentration of Tether suggests that control of Tether is in the hands of a few central players who can swing Bitcoin prices, and have a vested interest in doing so. It also suggests that many exchange players have a vested interest in keeping the Tether game going, - Griffin told Bloomberg.

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Tether’s woes

Bloomberg also recently suggested that Tether wants to obfuscate its transactions by migrating USDT to multiple Blockchains, such as EOS and Tron.  

The flagship stablecoin issuer has been under intense scrutiny since the end of April after Bitfinex was accused of using Tether funds to cover up its loss of $850 mln.

However, when it comes to centralization, it is a universal problem for the whole cryptocurrency industry, which, ironically, makes a case for decentralization.

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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Bitcoin Price Likely to Decline to $7,800: Crypto Analyst

  • Yuri Molchan
    📰 News

    Bitcoin is to find support at $7,800 or recover to $8,300, an analyst writes, but either way ‘continuation of the ranging on either of the levels is going to occur’

Bitcoin Price Likely to Decline to $7,800: Crypto Analyst
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Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Over the last few days, Bitcoin has been trading below the $8,500 area. At the moment, it has recovered to $8,258 after the recent slip below the $8,100 level.

Analysts have been bullish on BTC in the long run, however, the nearest BTC price movements are expected to be bearish.

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The crypto analyst @CryptoMichNL believes that there are two paths ahead of Bitcoin at the moment. If it fails to recover to $8,300, he says on his Twitter page, then the market should be ready for the flagship coin to drop and find support at the $7,800 or $7,300 levels.

Whichever way it goes, ‘continuation of the ranging on either of the levels is going to occur’.

The analyst tweeted this forecast twice with an hour pause.

Subscribe to News.U.Today on Facebook, and get involved in all top daily cryptocurrency news, stories and price predictions!

About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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