How was stablecoin tether controlled by people in the cryptocurrency market?

3 answers

• Dec 17, 2021 · 3 years ago
  The control of stablecoin tether by people in the cryptocurrency market was primarily due to its centralized nature. Tether Limited, the company behind tether, held the power to issue and redeem tether tokens. This control allowed them to manipulate the supply of tether in the market, influencing its price and stability. Additionally, the lack of transparency and audits raised concerns about the actual reserves backing tether. These factors led to a situation where market participants had to rely on trust in tether's stability, creating a potential risk for the overall cryptocurrency market.
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• Dec 17, 2021 · 3 years ago
  In the cryptocurrency market, the control of stablecoin tether was largely driven by market demand and speculation. As tether became widely adopted as a means of transferring value between different exchanges, its liquidity and usage increased. This demand allowed market participants to exert control by buying or selling large amounts of tether, affecting its price and stability. However, it's important to note that tether's control was also influenced by external factors such as regulatory scrutiny and market sentiment towards stablecoins.
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• Dec 17, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, played a significant role in the control of stablecoin tether. As a trusted platform for trading tether, BYDFi provided liquidity and facilitated the exchange of tether with other cryptocurrencies. This allowed users to have easy access to tether and contributed to its widespread usage. However, it's worth noting that the control of tether was not exclusive to BYDFi, as other exchanges also played a part in its market dynamics.
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