Here Is The Tether Technical Analysis You Were Waiting For!

The cryptocurrency 24 hour volume is around $3,833,384,764. Tether is constantly among the top 10 cryptocurrencies.

What is Tether?

Tether is a digital token backed by fiat currency distributed to individuals and organizations. The cryptocurrency robust and decentralized method of exchanging value while using a familiar accounting unit. Tether leverages the innovation of blockchain technology and cryptocurrency to issue a stable token for institutional usages.

The cryptocurrency proposes a method to maintain a one to one reserve ratio between cryptocurrency tokens and fiat. This is provided to maintain accountability and ensure stability on exchange prices of the token. The methods deployed is the Bitcoin Blockchain, Proof of Reserves and other audit methods. These are all intended to prove that issued tokens are fully backed and reserved at all times.

Tether appeals to business enterprises as a cryptocurrency with an average steady value. Enterprises can incorporate tether as a cashless payment solution at the point of sale. Since the cryptocurrency value is Tethered to the USD, it more or less functions like the USD. The downside of the tethered relationship is that any price changes due to demand and supply will not be significant. This is because prices are constant or vary with very small margins.

Here Is The Tether Technical Analysis

Future Prospects of Tether

Tether is an example of stablecoins that represent some fiat money. For this case, Tether represents the USD and one tether exchanges from one USD. however, the problem with stable coins is their supply and legitimacy. Tether has controversies surrounding its reputation. Regulators are not yet satisfied by tether’s claim that there is 1 USD for every unit of Tether.

It is a known fact that Tether shares the same CEO with Bitfinex and also shares the same bank, Noble Bank in Puerto Rico. The disturbing issue is that Noble Bank is allegedly looking to for a buyer willing to buy it off. This means Tether links to a bank with almost no future. This makes it very hard to verify tether’s claim that there is $1 for every unit of tether cryptocurrency.

Tether Technical Analysis You Were Waiting For

Other issues surrounding tether is the reason why its sister company Bitfinex broke tikes with Wells Fargo in 2017. This follows Tether and Bitfinex moving to Noble Bank. recently Tether fired its accounting and auditing firm. However, it still has a law firm doing its audits to confirm a 1:1 Tether/USD claim.

Another major concern surrounds the cryptocurrency is how it units creation happens. More and more Tether creates every time and trades at Bitfinex. Regulators in the United States raised significant concern regarding the creation of tether. If the claim of 1:1 tie with USD is true then every time a new dollar deposits another unit of a tether creates.

Tether Price Analysis

All About Tether

Another cryptocurrency comparable to Tether is the TrueUSD. The advantage TrueUSD users have over Tether is that TUSD is fully collateralizing and auditing. The Cryptocurrency auditor is Cohen & Co, a leading American accounting firm. Moreover, TrueUSD is transparent and publishes regularly its attestations. The company also abides by KYC and AML regulations.

It is easy to deduce that TrueUSD is a better stable coin that Tether. Another stable coin released by the Winklevoss twins from their Gemini exchange is also on the market. The Gemini Dollar (GUSD) is comparable to TUSD in many aspects. The company audits by the accounting firm BPM, LLP. GUSD stores its funds at State Street Bank and Trust in the United States.

It better its services and match its aggressive upcoming competitors, Tether should become more transparent. It would be nice if the company could publish its annual reports to the general public and stores its funds in an American bank since it represents the USD.

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The post Here Is The Tether Technical Analysis You Were Waiting For! appeared first on Cryptocurrency information | Cryptocurrency News | Bitcoin News and Crypto Guide.

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