Tether May Now Be 11th Largest Bitcoin Holder, Analyst Says
As an affiliate, we may earn from qualifying purchases. We get commissions for purchases made through links on this website.
[ad_1] Receive $10 in Bitcoin when you buy or sell $100 or more on Coinbase! https://mathisenmarketing.com/coinbase
Tether, the controversial stablecoin that is said to be backed one-to-one by the US dollar, has stakes in Bitcoin that may make it the 11th largest holder of the cryptocurrency, according to a recent analysis. This revelation has raised concerns and further scrutiny about the secretive nature of Tether’s operations.
Primarily used as a bridge currency in the crypto market, Tether has been subjected to numerous controversies and allegations in the past. Critics have long accused the company of manipulating the market, creating artificial demand, and lacking the claimed US dollar reserves to back its token.
However, a recent analysis conducted by blockchain research firm Glassnode suggests that Tether might be holding a substantial amount of Bitcoin. According to the analysis, Tether’s Treasury is at the forefront of accumulating Bitcoin, making them a major player in the cryptocurrency market.
The study found evidence of significant BTC inflows to Tether’s treasury, with Tether being responsible for the largest share of large Bitcoin transfers. These transfers, known as “whale moves,” represent transactions involving substantial amounts of Bitcoin and typically influence the market.
By tracking known addresses associated with Tether, Glassnode concluded that Tether now holds around 40,000 Bitcoins. This puts Tether in the top 11 Bitcoin holders, alongside giants such as MicroStrategy, Grayscale, and Block.one. With Bitcoin’s recent rally, the value of Tether’s BTC holdings exceeds $1.5 billion.
While Tether’s involvement in the crypto market shouldn’t come as a surprise, the extent of their Bitcoin holdings raises concerns about transparency and potential market manipulation. Tether has previously come under scrutiny for its lack of an independent audit and the opacity surrounding its dollar reserves. Critics argue that the company’s alleged lack of proper backing for its tokens adds unnecessary risk to the overall stability of the crypto market.
The report’s findings intensify the need for greater regulatory scrutiny and oversight of stablecoins, particularly those claiming to be backed by fiat currencies like Tether. The lack of transparency and the potential to manipulate the market should be of great concern to regulators, who have already expressed worries about the risks posed by stablecoins.
Moreover, Tether’s growing influence as a major holder of Bitcoin brings forth questions surrounding their ability to impact the price of the cryptocurrency. Critics argue that Tether’s massive reserves could be utilized for wash trading or price manipulation, thus affecting the wider market.
With regulators becoming increasingly vigilant in the crypto space, it is imperative for companies like Tether to enhance transparency and address concerns regarding their operations. The lack of regulatory oversight and the potential for market manipulation only serve to undermine the credibility and stability of cryptocurrencies.
As the crypto market continues to evolve, the need for robust regulation and a transparent system cannot be overstated. The Tether saga serves as a stark reminder that the lack of accountability within the crypto industry can have far-reaching implications. It is now up to regulators and industry stakeholders to restore trust and ensure that stability remains paramount in this rapidly growing sector.
[ad_2] Receive $10 in Bitcoin when you buy or sell $100 or more on Coinbase! https://mathisenmarketing.com/coinbase
Source link
