USDT to Possibly Get a Larger Marketcap
Launched in 2014, Tether (ticker: USDT) has always been a bit of a controversial cryptocurrency. It was the first stable-coin to have ever been released. This of course means that its value is pegged to that of the U.S. Dollar. Many, if not most exchanges make use of USDT trading pairs and it is currently #7 on coinmarketcap.
The controversy surrounding Tether has started since
its early days. Some have claimed that Tether is not properly backed with a
1-to-1 U.S. Dollar cash reserve as promised. These doubts were confirmed during a court
battle between the New York Attorney General and Tether's parent company,
iFinex. Tether revealed that it was backed by $0.74 in cash and cash equivalents. The court battle is still ongoing currently.
In a surprise announcement by Blockstream, they have announced the launch of Tether on Liquid. This essentially means that Tether has launched on yet another blockchain, following Ethereum and Tron.
Liquid is a sidechain protocol for Bitcoin (BTC) developed by Blockstream. It was announced on 2015 and launched in 2018.
The Liquid-based USDT will allow for atomic swaps between Bitcoin and Tether, confidential transactions and multi-sig security.
Currently Liquid USDT is only available on Bitfinex although it will roll-out to other exchanges in the future. The next exchanges to list Liquid USDT will be BTCturk, OKEx amongst others. Seeing Tether's growing network of blockchains it operates on, it looks like Tether will maintain if not grow its market cap substantially.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado