Although with its fair share of controversy, Tether is now among the top ten cryptocurrencies according to coinmarketcap. The coin which its founders indicate that its backed by an equal amount of the US dollar in a 1:1 ratio is now closing the list of the top ten digital coins.
The climb to the 10th position which was occupied by Tron (TRX) is largely attributed to the recent increase of its market capitalization by a whopping 250 million new tokens. With the overall virtual currency market experiencing some bear forces, such an addition of tokens for the coin was a sure way to secure it a new or at least an improved ranking in the digital currency circles.
Tether is currently estimated to store 400 US dollars in reserve bank accounts which have not be marked for tokenization. If these is reversed, the coin would secure an even better ranking on the list of the leading cryptocurrencies.
With arguments emerging that tether does not have a 1:1 ratio of US dollar backing, a legal firm, Freeh, Sporkin & Sullivan (LLP), has come out to defend the coin noting that its reserve bank accounts hold the required amount of US dollars.
However, a recent study by two finance professors at the University of Texas strongly indicated that Tether has been over time been used to manipulate the price of bitcoin.
The Department of Justice in the United States also came out to investigate whether the prices of bitcoin and other leading digital coins are manipulated. Mainly concentrating on spoofing or flooding.
Whether Tether will retain its new-found position when the market finally breaks loose of the bears is something we can only wait and see.
Do you think Tether’s position among the top ten cryptocurrencies will last?
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