Coronavirus Pandemic Effects Crypto Market while Tether (USDT) Looks to Have Gained Popularity
Cryptocurrency Enthusiast – Max Steadman
The Covid-19 pandemic has resulted in the instability of traditional markets and stocks. This is also the case for some areas of the cryptocurrency trading market and industry. While these effects are being reported on, one cryptocurrency that appears to have avoided these negative implications is Tether (USDT).
While the market capitalization for the leading crypto Bitcoin (BTC) has seen a decline of 37% since the start of the year, Tether (USDT) has seen an increase of 38% (nearly $2 billion in growth) according to the research firm Messari.
Tether (USDT) is referred to as a stablecoin as it is pegged to the U.S dollar value. The notion of the cryptocurrency allows users to perform transactions, buy Bitcoin and other altcoins with little price volatility. With its dollar cash-like equivalency, it has seen more investors buying the coin as other cryptocurrencies fall in value.
Generally speaking, 1 USDT coin is equivalent to $1.00. The private company behind Tether is based in Hong Kong and have stated that they release tokens into circulation based on customer demand. Tether has started issuing its stablecoin on many different digital platforms as more users join the space, increasing its level of demand.
As the industry evolves, so do the international government regulatory guidelines. Many cryptocurrency trading firms update their customer contract agreements to reflect this, including the mandatory requirement for users to comply with a Know-Your-Customer (KYC) verification process.
In many countries in which the Tether (USDT) blockchain operates, the dollar is often the local currency and could even possibly influence their native currency to an extent. This will depend on the use of stablecoin.