Cryptocurrencies and digital assets are notoriously volatile markets. Vast price swings can appear out of nowhere. At the same time, creating artificial “pumps” in the cryptocurrency world has become a lot more difficult. The role of Tether in these schemes still remains unclear.
Tether Supply Keeps Increasing Rapidly
The month of August 2018 has been interesting for Tether. With another half a billion tokens added to the supply, experts expected a major Bitcoin price pump. So far, nothing of the sort has happened. It is an example of how difficult it becomes to influence cryptocurrency markets. For the overall industry, it is another sign of maturity.
Cryptocurrency price manipulation is a touchy subject. Such events are hinted at quite regularly. In most cases, the discussions involve the Tether asset. With the increasing supply and lack of price action, most rumors are put to rest. Whether it is coincidence or a logical outcome, remains to be seen.
Things look very different compared to late 2017. Bitcoin’s price often rallied when Tether increased its supply. That situation has, at least temporarily, changed for the better. Questions regarding USDT and Bitfinex still remain unanswered at this stage. However, with no evidence of wrongdoings, there is no manipulation to speak of.
The Future of USDT and Altcoins
Conspiracy theories are not difficult to come by in the cryptocurrency industry. There is a general bias toward certain projects which will prove difficult to erode. Tether has been the target of such theories for over a year now. It shares the same management team as major exchange Bitfinex, where most of the Bitcoin price action originates from.
However, Chainalysis claims things are changing. Alleged research by the company claims USDT is making its way to prop up altcoin prices these days. It is certainly true smaller-cap coins paired with USDT tend to see big price swings. At the same time, this has always been the fate of altcoins. It is unlikely that the situation will change in the near future.
The lack of cryptocurrency pumps is an intriguing development. For markets with no real financial backing, price swings are only normal. Gains and losses of 5% or more still tend to occur in the cryptocurrency world. These trends are becoming less frequent, which is a positive sign. Cryptocurrencies need to find some stable ground prior to gaining mainstream adoption. This current trend is a step toward achieving that goal.
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