The first half of the year has already passed by; thus, we can gain a firm perspective of how the crypto space trends are over the past six months. Looking at Bitcoin, it has gone up by more than 140%, but for the crypto exchanges in the market, they are still vulnerable and are currently on the face of things. The Tether token is still in between the controversy that is taking place.
The Tether Controversy is Still Taking Place
Last year the token closed with allegations of the lack for one-for-one dollar backing. As a result, it was finding itself in the middle of the heated controversy. A token that many would think it is more than healthy within the crypto space, but with the recent report published, it seems to be stating otherwise.
One of the crypto analysists firms, Longhash, imparted a health score that was about 90 out of the 100 to the current stablecoin that is being accused of having fractional banking. According to this classified, the Tether token is being classified as being very healthy within the crypto space.
Longhash used a fivefold metric to establish the health of the said token, and this is where the firm went ahead to state that USDT was actually faring very well from the five metrics presented. The report was keenly looking at the stability of the token in terms of the price fluctuations.
The second key metric that was used in the analysis is the use and acceptance of the token; this was based on the volume and the number of exchanges taking place between the pairs. The other metrics they looked into was risk resistance against the volatile crypto market, growth of the coin, long term performance, all this relative to the tokens market capitalization.
Looking at the Gemini USD
Gemini USD was launched by Winklevoss twins and was able to score about 78. But this is not it as it was able to outscore the stablecoin senior when comparing the stability and practicability. But the coin feels a little short when looking at the market acceptance and the overall growth.
When looking at the distribution, the Tether coin was described as being concentrated. The reason being half of its current supply is on Binance, a crypto exchange that has been considered to be the largest in the world. However, despite this lopsided supply, it seems the USDT is fairing on much better than the stablecoin counterparts.
“Could the actions of iFinex eventually cause USDT to crash? It’s possible. But at least according to the data that we currently have, we think USDT is in extremely good health.”