Bitcoin News Is Not For Sale

Please don’t skip this message — it only takes a few minutes to read. Sorry to bother you, but time is running out.

Bitcoin is freedom. If you think independent media that is bitcoin-only is important, if you believe information and education about bitcoin matters for adoption, and if you have gained something from our work, we would be grateful if you could chip in $21.

Join the 2% of our readers who occasionally make a donation. If everyone reading this donated just $21, we would reach our target in a couple of hours. $21 won’t break you, we hope.

To cover the cost for our servers, editors, writers, and thumbnail artists we rely on our readers’ generous support.

How You can chip in:

Send a Sats as a tip to a writer. Each and every one of our writers has an active tipping widget.
Join our campaign on geyser.fund. Awesome perks are waiting for you such as the Bukele Blend Coffee.

Your support ensures that Bitcoin News stays independent with a laser focus on Bitcoin and only Bitcoin.

Funding Progress

Tether Reopens Direct USD Redemption

written by

Zachary

Support free journalists: > send a tip

BITCOIN NEWS,
November 27, 2018

Tether Limited has announced that it has re-enabled direct redemption of its native token USDT for US dollars through its own wallet. It expects this to help stabilize the price of USDT after two months of volatility. This announcement is due to the new banking relationship between Tether Limited and Deltec Bank in the Bahamas.

Tether (USDT) is currently the top stablecoin with a market cap in excess of USD 1.8 billion and has the 7th highest cryptocurrency market cap overall.

Throughout most of 2018, the price of USDT was stable at parity with the USD, an optimal condition for a stablecoin. However, in early October 2018, USDT became unpegged from the USD and slid lower after severing ties with the Noble Bank of Puerto Rico. The average price of USDT across all cryptocurrency exchanges briefly dipped as low as USD 0.925 due to fears of insolvency. Since then, Tether has remained below parity with the USD and has been quite volatile. In this period, the circulating supply of USDT shrank from 2.8 billion to as low as 1.7 billion, indicating USD 1.1 billion of the tokens being redeemed.

Currently, USDT is hovering above USD 0.98 and continues to be volatile but the restoration of the direct USD redemption service should restore stability. There will be many companies and exchanges where USDT users can redeem and high volume traders could even redeem individually, which should restore the global arbitrage mechanism that previously kept USDT’s price stabilized. It will take some time for this to go into effect since users have to go through a verification process for redemption.

Soon, users will be able to acquire USDT through the Tether wallet as well for a minimum trade of USD 100,000. Withdrawal fees may cause USDT’s price to stabilize slightly below parity in the long term. That being said, Tether volatility should dissipate after this move.

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

Help spread this article :)

Zachary

More of the Author

Disclaimer

BitcoinNews.com is NOT INVESTMENT ADVICE

Opinions expressed are entirely their own and do not necessarily reflect those of BitcoinNews.com

For informational purposes only. Individuals and entities should not construe any information on this site as investment, financial, legal, tax, accounting or other advice. Information provided does not constitute a recommendation or endorsement by BitcoinNews.com to buy or sell bitcoin, cryptocurrencies or other financial instruments. Forecasts are inherently limited and cannot be relied upon. Do your own research and consult a professional advisor. The opinion of authors do not reflect those of BitcoinNews.com