Even though Visa said it would start settling transactions in USD Coin (USDC), almost nobody in the space uses this stablecoin to trade crypto. If you ask around, most traders across the board use the USDt pair, which is visible as it accounts for 55% of all Bitcoin purchases.
Even though the legal issues that used to surround Tether got every single one of us scared, it seems like everything was just FUD.
New York Attorney General Letitia James said back in 2019 that “the claims that [Tether] was fully backed by U.S. dollars at all times was a lie” after opening an investigation against the company. Her remarks kept many traders and me awake at night while our capital sat in Bitfinex waiting for the next bull market to begin.
After 22 months of deliberation, Tether finally walked out with a bit of a slap on its hands and was asked to provide quarterly reports for two years describing its reserves’ composition. The settlement saw many cryptocurrency enthusiasts, including myself, jump the gun and buy as many cryptos as possible.
I literally deployed all my USDt in the market and encouraged my friends and their crypto moms to do the same.
To our advantage, Tether issued a report in late February assuring that its assets exceed liabilities, which helped push the market up and my crypto bags. Although the firm did not specify what assets are used to back USDt, who cares? If attorney James did not find any wrongdoings, who am I to judge this company that seems to be helping the cryptocurrency industry by providing liquidity?
I recently read Bloomberg’s cryptocurrency outlook report, where the company claims that the strict scrutiny that Tether is about to go through will only “enhance the value of Bitcoin.” So as long as Tether stays compliant, we may need to grab our space suits because cryptos would likely be heading to the moon.
The only question that remains to be answered is “When Lambo?”