The problem with any kind of cryptocurrency is the volatility.  To sort this issue, stable coins came in to play.  Tether claims to have 1 USD backed for 1 Tether issued, and therefore USDT.

A common acquisition is that there is not sufficient USD backing the stable coin.

Recently, Paolo Ardoino pointed to how it would have been possible for users to see Tether (USDT) transactions happening from Bitfinex Hot Wallet to Tether Treasury with an equal amount going back to the Bitfinex-Hot-Wallet.

He pointed to how this transaction was happening due to chain swap.  Further clarifying that some of the big exchanges make use of Bitfinex as a swapping facility.  For example, a typical transaction can be sending Tether-USDt-Tron to get back the same amount of Tether-USDt-Ethereum.

Justifies the reason behind Bitfinex having surplus Tether-USDt-Tron but a deficit of Tether-USDt-Ethereum.  Also, clarified that to rebalance BitFinex would send Tether-USDt-Tron to Tether-Treasury to get back Tether-USDt-Ethereum.

The transparency in the appreciable.  However, it is noted in the process that TRX is having a higher usage because of its lower fees.  This probably is one reason for why exchanges end up with USDt Tron the sooner BTC and Alts are bought within high volume.

When the whales transacting on the exchanges are watched very closely, users feel that they are able to see that they are using more of TRX in the process.

When commenting about the increasing usage of TRX in the process Sydney Ifergan, the Founder at The Currency Analytics stated, “TRX team are smart in capturing the market by making the fees very low.  They have already attracted the whales visible in the Tether transaction story.”

Tether (USDT) and Trust

Tether is becoming a point of envy among its competitors.  The coming of the Wrapper functionality has further brought in more attention. 

For those who had concerns about Tether regulation, Paolo Ardoino declared that Tether is registered with FinCEN. Very recently, it touched a market capitalization of $16 Billion in market capitalization.

Paolo Ardoino in the past stated, “A few people in the industry told me that some @tether_to competitors are going around saying that they’re better because they are regulated. It’s sad how many lies people tend to spread as last resort to save their businesses. (Btw Tether is registered with FinCEN and regulated)”

He also established that the competitors of Tether were trying to use the concept of lack of regulation to negatively influence in the mind of the already existing Tether users and to gain favours from them.