Is Tether Just a Scam to Enrich Bitcoin Investors?

[Malam90]

Consumers who invest in cryptoassets “should be prepared to lose all their money,” the U.K’s Financial Conduct Authority warned cryptocurrency investors on Monday. That message came amid an 11 percent decline in the price of Bitcoin, the industry’s premier asset, whose value had tripled in the last three months. But it’s a warning that might also apply to holders of a cryptocurrency that’s supposed to be one of the pillars of this innovative financial system.

Tether, the third-most widely held coin by value (Ethereum is second), is unique among its peers. In a market built largely on speculation, Tether is a stablecoin, pegged to the dollar at a 1-to-1 ratio. Tethers help provide liquidity and offer a widely recognized token that can facilitate transactions between various cryptocurrencies. In the world of crypto markets, they essentially act as a digital dollar, and they’re everywhere. On some days, Tether’s trading volume exceeds that of Bitcoin.  Source Link