As Tether Loses USD Peg, OKEx Will List ‘Regulated’ Cryptocurrency Stablecoins

Bitcoin price

If tether (USDT) is truly backed by and redeemable for physical U.S. dollars stored in company-controlled bank accounts, the so-called cryptocurrency “stablecoin” should manage to weather this period of uncharacteristic volatility until arbitrage restores its USD peg. If not, we could be witnessing the unraveling of the token that sees more daily trading volume than any other cryptocurrency, except for bitcoin.

The latest chapter in the $2.4 billion tether’s trial-by-fire will see OKEx, the world’s second-largest cryptocurrency exchange, list four USDT competitors, including offerings from industry heavyweights Gemini and Circle.

Beginning today, OKEx traders can begin depositing Gemini Dollar (GUSD), Paxos Standard (PAX), USD Coin (USDC), and TrueUSD (TUSD) into their exchange accounts. Tomorrow morning, at 14:00 HKT on Oct. 16, each USD-pegged cryptocurrency will begin trading against both bitcoin and tether. Three hours later, the tokens will be available for withdrawal.

Tether, as CCN reported, lost its USD peg on Monday, and — despite recovering somewhat from its intraday low — has, of the time of writing, failed to return to dollar parity despite copious opportunities for traders to profit from USDT arbitrage.

Coinbase 2
tether price
USDT/USD | Kraken

On U.S. cryptocurrency exchange Kraken, USDT traded as low as $0.85 against physical USD and continued to trade at a seven cent discount to its supposed value as of the time of writing.

With more opportunities for investors to trade tether directly against its upstart competitors, the market will finally have a chance to sort out whether tether — long the dominant stablecoin as measured by both market cap and trading volume — is as trustworthy an asset as its issuer and supporters claim. Even if critics are incorrect in alleging that Tether’s operations are not all above-board, a sustained departure from dollar parity accompanied by a loss of market share could incentivize the company — along with cryptocurrency exchange Bitfinex, with whom it reportedly shares a management team — to operate with less opacity and perhaps even undergo the long-called-for full audit of its balance sheet.

Already, PAX and TUSD have achieved daily volumes of $11 million and $27 million against tether on Binance, with each trading at a premium of at least 8 percent to USDT. GUSD and USDC are trading at similar premiums to USDT, though these markets have not seen as much volume.

Meanwhile, cryptocurrency payment processor BitPay has just announced that it will support settlements in two stablecoins, GUSD and USDC. Tether, despite its dominant market share, was excluded from the new feature.

Featured Image from Shutterstock. Charts from TradingView.

Follow us on Telegram or subscribe to our newsletter here.

• Join CCN’s crypto community for $9.99 per month, click here.
• Want exclusive analysis and crypto insights from Hacked.com? Click here.
• Open Positions at CCN: Full Time and Part Time Journalists Wanted.

Advertisement



As Tether Loses USD Peg, OKEx Will List ‘Regulated’ Cryptocurrency Stablecoins 1
About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

Leave a Reply

E-Crypto News Executive Interviews



bitcoin
Bitcoin (BTC) $ 32,736.00
ethereum
Ethereum (ETH) $ 1,911.33
tether
Tether (USDT) $ 0.995332
binance-coin
Binance Coin (BNB) $ 287.41
cardano
Cardano (ADA) $ 1.21
dogecoin
Dogecoin (DOGE) $ 0.225824
xrp
XRP (XRP) $ 0.628372
usd-coin
USD Coin (USDC) $ 0.996735
polkadot
Polkadot (DOT) $ 15.01
binance-usd
Binance USD (BUSD) $ 0.990857
USD
EUR
GBP
bitcoinBitcoin (BTC)
$ 32,736.00
ethereumEthereum (ETH)
$ 1,911.33
tetherTether (USDT)
$ 0.995332
bitcoin-cashBitcoin Cash (BCH)
$ 462.44
litecoinLitecoin (LTC)
$ 125.36
bitcoinBitcoin (BTC)
27.503,31
ethereumEthereum (ETH)
1.605,81
tetherTether (USDT)
0,836233
bitcoin-cashBitcoin Cash (BCH)
388,52
litecoinLitecoin (LTC)
105,32
bitcoinBitcoin (BTC)
23,538.66
ethereumEthereum (ETH)
1,374.33
tetherTether (USDT)
0.715688
bitcoin-cashBitcoin Cash (BCH)
332.52
litecoinLitecoin (LTC)
90.14

Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

What Role Do Cryptocurrencies Play In The Era Of Ransomware Attacks?
June 9, 2021
Crypto Scams On The Rise As Market Enters Bull Cycle
Crypto Scams On The Rise As Market Enters Bull Cycle
December 22, 2020
Harpreet Singh Sahni perpetrated the Plus Gold Union Coin (PGUC) scam
Sydney Concert Promoter Harpreet Sahni Involved In $50M Crypto PGUC Scam
November 2, 2020
KuCoin hackers steal $150 million
KuCoin Exchange Hacked But Insurance Will Cover The Stolen $150M
September 29, 2020
Mining City insists that it is legit
Mining City Refutes Claims By Philippines SEC Of Being A Scam
September 23, 2020

Blockchain/Cryptocurrency Questions and Answers

What Is Plethori Platform And How Does It Work?
June 12, 2021
What Is The Fudge Token?
What Is The Fudge Token?
June 5, 2021
What Is Shiba Inu (SHIB) Cryptocurrency And How Does It Work?
What Is Shiba Inu (SHIB) Cryptocurrency And How Does It Work?
May 31, 2021
What Is PancakeSwap And How Does It Work?
What Is PancakeSwap And How Does It Work?
May 27, 2021
How Has Internet Computer (ICP) Become A Top-10 Crypto?
How did “Internet Computer Coin”(ICP) Become A Top-5 Crypto?
May 19, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin32,817 1.56 % 3.20 % 14.36 %
Ethereum1,914.3 1.72 % 4.40 % 19.09 %
Tether0.9976 0.23 % 0.71 % 0.09 %
Binance Coin285.87 2.74 % 0.79 % 17.48 %
Cardano1.220 1.11 % 1.14 % 17.65 %
Dogecoin0.2274 2.83 % 9.76 % 25.98 %
XRP0.6265 2.68 % 5.24 % 25.05 %
USD Coin1.000 0.16 % 0.08 % 0.19 %
Polkadot14.98 3.23 % 7.74 % 34.38 %
Binance USD1.000 0.19 % 0.05 % 0.14 %

bitcoin
Bitcoin (BTC) $ 32,736.00
ethereum
Ethereum (ETH) $ 1,911.33
tether
Tether (USDT) $ 0.995332
binance-coin
Binance Coin (BNB) $ 287.41
cardano
Cardano (ADA) $ 1.21
dogecoin
Dogecoin (DOGE) $ 0.225824
xrp
XRP (XRP) $ 0.628372
usd-coin
USD Coin (USDC) $ 0.996735
polkadot
Polkadot (DOT) $ 15.01
binance-usd
Binance USD (BUSD) $ 0.990857