This article addresses hypothetical scenarios and speculations surrounding Tether and how it will affect the cryptocurrency ecosystem.
Tether is perhaps one of the most important and largest entities in the cryptocurrency ecosystem with a market share of more than $4 billion. Tether was launched in 2014 with a singular goal of improving liquidity and providing access to this revolutionary, yet nascent technology, which it did, especially considering how it has grown over the years.
In a way, Tether was like this savior that facilitated the growth of an entire ecosystem, perhaps, like Harvey Dent, who was once an upstanding citizen of Gotham. But the naysayers look at Tether and see Two-Face who went insane and became the villain.
Recently, Bitinex posted a new blog, one written in anticipation of a lawsuit that was based on “bogus study.” A day later, the law firm, Roche and Freedman, filed a class-action lawsuit against Bitfinex and Tether alleging market manipulation on various instances. This is not the first legal rodeo for Bitfinex and Tether. The NYAG brought a lawsuit against Bitfnex for violating securities law and servicing NY residents in violation of the Martin Act, a lawsuit which is still ongoing.
With a flood of lawsuits and investigations against Bitfinex and Tether, it is important to know how big both these companies have grown, especially Tether, to have a massive impact on the cryptocurrency ecosystem, good or bad.
Getting Rid of the Keyhole: A Broader Look at Tether and other Stablecoins
To put things into perspective, in the stablecoins ecosystem [GUSD, TUSD, USDC, PAX], Tether’s share is a whopping 83%. However, the rest of the stablecoins together make up only 17%.