Tether (USDT) Finds rising Demand in DeFi and A New Version of Betteridge’s Law of HeadlinesJune 12, 2020
Project Tether USDT began 6 years ago, June 10, 2014. Since then, it’s the most successful of the stable coins. At the time of writing, it is reported to be the third most capitalized cryptocurrency on Coinmarketcap
Tether retweeted: “Paolo ardoino CTO of Tether to share his insights on the DeFi space in Asia as it stands on the cusp of a global digital banking revolution spearheaded by DeFi, short for decentralized finance.”
Defi is the open and transparent financial system that is supported by the blockchain technology. A large part of Asia is underbanked and micro businesses do not have access to credit. Further, the lending costs in traditional finance is increasing. Micro businesses and their finance needs are not considered important by the traditional lenders, this is considered to be an area where DeFi can come for help.
Tether being the influential Stable Coin is finding an increase in its demand among Asian Traders. There is an increasing interest in DeFi and also a demand for Tether as it can provide for some protection against volatility.
Several DeFi platforms have already adopted Tether (USDT) for the financing requirements. For institutional investors Tether is the most hailed fiat gateway. Thus, they have been boosting liquidity across the DeFi space.
Sydney Ifergan, the crypto expert tweeted: “The liquidity and stability facilitated by Tether (USDT) has made it the Stablecoin of choice for individuals looking at some stability in their crypto investments and also by institutions alike.”
There is nothing called 100% protection from volatility. When it comes to the expected value that investors are expecting in return, they need to work their minds by studying the live market and how the value turns out to be during inter-conversion.
Tether (USDT) Chinese Investors Secretly Buying
Stuart Hoegner tweeted the Tether story from DeCrypt in two parts.
On May 22, 2020 Decrypt published “Nearly $5 billion in Tethers were issued since January. Why?” On Jan 11, 2020 Decrypt published “Chinese Investors secretly buying Bitcoin helped fuel Tether’s $5 Billion Surge.”
However, onlookers opined that none of these makes sense as there is no secret buying. Someone asked, “Secret buying? Where do they secretly sell it?”
Adam Back replied, “It’s a new version of betteridge’s law of headlines – when the same publication answers its own posed conspiracy question in the negative, next article:)”
The curiosity levels are only rising as people are beginning to think if there is some third other reason regarding the Tether issuance.
One of the commentators opined that the Chinese who had USD would not need tether. They buy Tether with RMB so what you are saying is 5 billion tether is backed by Chinese RMB in Chinese Bank Controlled by CCP. Sounds pretty safe!