The report generated by the Coin Metrics reveals striking news that almost 300 mature players own nearly 80% of Tether Stablecoin (USDT). It seems that the price value is manipulated by just these whales and is not affected by traders or investors at a small level.
The steering of Tether is in the control of minimal numbers. The estimated worth of the assets belong to these players is approximately $1 million which is enough to control the price in the markets. Binance and Bittrex are also on the top in this list of big players which wondered everyone.
According to John Griffen, a professor of the University of Texas:
The concentration of Tether suggests that control of Tether is in the hands of a few central players who can swing Bitcoin prices, and have a vested interest in doing so. It also suggests that many exchange players have a vested interest in keeping the Tether game going.
Role of Chinese Traders
China is among the largest economies of the world and this is of course due to the high volume of trading. Tether got the attention of Chinese Traders for trading between China and Russia which boom the price of the token. Traders in China are buying Tether of worth up to $30 million per working day.
BTC Price Manipulation
The news is spreading and also has a strong weight that increases in market capitalization of Tether (USDT) will drive the prices of Bitcoin. This was seen back in 2017 when Bitcoin’s price got rise due to the manipulative power of these big players.
Controversy about Tether
The companies backed by the coin has been accused that they had mitigated the losses up to $850 million in clients’ funds. The developers of Stablecoin claim that each USDT is backed by one USD.
Besides these controversial issues, the market cap of Tether is continuously increasing with a great spark in the price value.
Conclusion
The dominance of these big whales including Binance and Bittrex has control over the steering of Tether Price value that will ultimately result in the manipulation of Bitcoin price.
Do you think that there are cracks in the decentralization and distribution of Tether? Express your thoughts in the comment section.
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