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Tether Expands on TON: $200M USDT Issued

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Tether, the issuer of the top stablecoin USDT, has integrated TokenPocket, a leading multi-chain wallet, on the Telegram Open Network [TON]. With this TON joins Ethereum and Binance Smart Chain on its list of supported blockchain networks.

Earlier, the leading stablecoin issuer leveraged the TON network to revolutionize the use of cryptocurrencies as a means of payment, offering users a seamless and convenient way to transact. As per the then-official statement, the move was deemed a “new era of accessibility, efficiency, and convenience for users worldwide”. This is because over $200 million worth of USD₮ has since been issued on TON’s blockchain. 

Tether’s association with TON goes back to April, after adding native USDT on the network. Following this successful integration, the network has processed nearly $10 billion in total transfer volume, surging by an impressive 124% month-over-month from June.

Data sourced from Token Terminal showed that user activity has posted similar growth during this time. The total transactions jumped from 208 million in April to now over 627 million [up 200%]. At present, daily active users on TON stand at 482K. (up 231% since April).

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Source: Token Terminal

Tether Increased Scrutiny

On the other hand, the TON Core team has dabbled in the wallet space by launching its W5 smart wallet standard in partnership with Tonkeeper, aiming to deliver gasless transactions on The Open Network blockchain. The upgrade to the layer-1 blockchain’s pre-existing wallet smart contract will allow users to use Tether for gas fees for USDT transfers and Notcoin for gas fees when transferring NOT.

The above developments underscore Tether’s commitment to revolutionizing cryptocurrency payments and solidifying TON’s position as a leading blockchain network. The leading stablecoin issuer is facing scrutiny from regulators around the world. This includes Markets in Crypto-Assets Regulation [MiCA] in the European Union, a financial regulation that he said would introduce more complexity for issuers and increased scrutiny on EU-licensed stablecoins.

As the regulatory structure regarding stablecoins in the EU remains contentious, key stakeholders such as Tether are proceeding cautiously but with optimism, hoping that regulations play in shaping the future of the industry.

Kraken Denies Plans to Delist Tether Amid Regulatory Uncertainty

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Despite­ whispers of a potential delisting in the­ face of Europe’s evolving re­gulatory landscape, leading crypto exchange­ Kraken has officially confirmed its continued support for Te­ther (USDT). This announcement come­s at a time when the e­ntire crypto industry grapples with the re­liability and regulatory compliance of stablecoins, with Te­ther being a prime focus.

The­ European Union’s recent approval of the­ Markets in Crypto-Assets (MiCA) framework has se­nt shockwaves through the crypto exchange­ landscape, prompting platforms to re-evaluate­ their strategies and e­nsure adherence­ to the new regulations. Howe­ver, the exchange­ remains steadfast in its commitment to Te­ther.

Marcus Hughes, Kraken’s Global He­ad of Regulatory Strategy, reassure­d investors in a statement: “We­ are fully prepared to adapt to e­merging regulatory require­ments. However, we­ want to be clear that there­ are currently no plans to delist Te­ther or modify our USDT trading pairs in Europe.”

This stance by Krake­n directly contradicts earlier re­ports that circulated through the crypto community, suggesting a pote­ntial withdrawal of support for USDT due to mounting regulatory pressure­. Kraken’s firm position carries significant weight, influe­ncing investor sentiment and shaping the­ dynamics of the European crypto market.

Kraken Expands European Regulatory Commitment

The­ regulatory landscape surrounding stablecoins, particularly USDT, has be­come increasingly complex. Krake­n’s decision to maintain its support for USDT amidst this uncertainty offers a much-ne­eded sense­ of stability for European investors.

Howeve­r, Kraken isn’t simply weathering the­ storm. The exchange is active­ly expanding its presence­ in the European regulatory sphe­re. This is evidence­d by their recent acquisition of Trade­Station Crypto and their ongoing plans to establish a European he­adquarters, with France and Ireland be­ing the frontrunners for this strategic location. This move­ shows Kraken’s commitment to regulatory compliance­ while simultaneously allowing them to be­tter serve the­ir European user base.

Krake­n’s decision to maintain USDT support in Europe demonstrate­s a strategic approach. By navigating the intricate re­gulatory environment, they aim to e­nsure continued liquidity and service­ excellence­ for their European clients. This firm stance­ serves as a beacon of stability within the­ crypto industry, offering much-neede­d reassurance for investors facing a pe­riod of regulatory uncertainty.

Related Reading | Solana (SOL) Price Soars: Analyst Anticipates ATH Breakout, Sets Target at $328.6

Tether’s Uncertain Fate: Ripple CEO’s Alarm on Government Action

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In the ever-evolving landscape of cryptocurrency, stability is a rare and sought-after commodity. Tether, the world’s largest stablecoin issuer, finds itself at the center of a storm as regulatory scrutiny intensifies. Ripple CEO Brad Garlinghouse’s recent remarks underscore the growing concerns surrounding the token and its potential ramifications for the entire crypto market.

Garlinghouse’s assertion that the U.S. government is “going after” Tether reflects a deepening regulatory focus on the controversial stablecoin. With the token’s role as a linchpin in the crypto ecosystem, any regulatory action against it could send shockwaves throughout the market. The uncertainty surrounding the situation is reminiscent of past black swan events, as Garlinghouse warns of another potential disruption akin to the FTX scandal.

Tether Holdings, the parent company overseeing the issuance of the Tether stablecoin, operates under a cloud of suspicion. Allegations of concealing crypto-linked funds and questions about the adequacy of its reserves have plagued the company for years. Despite periodic assurances and efforts to improve transparency, doubts persist regarding the true backing of USDT.

Tether’s Shadowy Connections

The letter from Senator Cynthia Lummis and Representative French Hill urging the Department of Justice to scrutinize Tether’s activities further adds fuel to the fire. Concerns about potential ties to illicit activities raise serious questions about the token’s compliance and integrity.

In response to mounting pressure, Tether has pledged cooperation with law enforcement and regulatory authorities. However, past controversies, including a multimillion-dollar fine for misleading customers about reserve holdings, have eroded trust in the company’s assurances.

Meanwhile, Ripple is positioning itself to enter the stablecoin market with its own offering in 2024. The company’s plans underscore the growing demand for trustworthy alternatives to the token. With a commitment to transparency and robust backing, Ripple aims to provide a stablecoin solution that addresses the shortcomings of existing options.

As the regulatory spotlight intensifies on Tether, the crypto market braces for potential upheaval. The outcome of this regulatory scrutiny remains uncertain, but one thing is clear, the stablecoin that binds the crypto ecosystem is under strain, and its resilience will be tested in the days to come.

Tether’s CEO Exposes Big 4’s Reputation Terror Amidst Crisis

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Since its ascent to dominance in the stablecoin market, Tether has faced persistent inquiries regarding the lack of audits for its reserves. The absence of these audits has left investors grappling with uncertainty, despite Tether’s pivotal role as the world’s leading stablecoin with a staggering $108 billion market value.

In a recent interview with DL News, Tether’s CEO, Paolo Ardoino, shed light on the company’s challenges in securing audits from major accounting firms. Ardoino highlighted a reluctance among the Big Four accounting firms—Deloitte, PwC, EY, and KPMG—to engage with the firm due to concerns about reputational damage.

The significance of audits from renowned firms cannot be overstated. Such audits would offer reassurance to investors, addressing perennial apprehensions about Tether’s reserves. As the backbone of the crypto market, the firm facilitates seamless transitions between fiat currencies and digital assets across various exchanges.

Challenges Mount for Tether in Audit Pursuit Amid FTX Fallout

Despite its indispensability, Tether has encountered obstacles in its pursuit of audits, including the fallout from the FTX incident and the broader challenges posed by regulatory scrutiny and cybersecurity threats within the crypto sphere. Ardoino underscored the hesitancy of accounting firms to prioritize stablecoin providers like the firm amidst their extensive clientele in the traditional financial sector.

Moreover, the recent upheaval involving Circle, Tether’s competitor, further intensified concerns regarding stablecoin operations. The failure of Silicon Valley Bank, in which Circle held substantial deposits, underscored the vulnerability of stablecoins to external factors.

Amidst these challenges, Ardoino reiterated Tether’s commitment to upgrading its reporting standards. While the company currently relies on quarterly attestations by BDO Italia, Ardoino emphasized the imperative of securing audits from reputable firms like the Big Four.

It’s crucial to discern the disparity between attestations and audits. While attestations provide insights based on documentation provided by the business itself, audits entail independent analyses by accounting firms, potentially uncovering hidden risks and compliance issues.

In the volatile landscape of cryptocurrency, stablecoins serve as anchors for investors seeking stability. The firm’s reserves model, backed by assets including US Treasury bonds, cash, Bitcoin, and gold, aims to maintain stability by pegging each USDT to the value of a real-world dollar.

Tether’s quest for audits signifies a pivotal step towards instilling confidence and transparency in the stablecoin market. As stakeholders await developments in this endeavor, the outcome will likely shape the future trajectory of Tether and the broader cryptocurrency ecosystem.

Tether Undergoes Major Restructuring, Expanding Beyond Stablecoins With New Business Divisions

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Tethe­r, the company behind the wide­ly-used stablecoin USDT, is undergoing a major re­structuring. This strategic move indicates Te­ther’s aspiration to expand beyond its primary role­ as a stablecoin issuer. The company aims to position itse­lf as a versatile participant in the blockchain e­cosystem, exploring various opportunities within this innovative technological landscape­.

The company’s de­claration, announced on April 18th in the ye­ar 2024, outlines the­ establishment of four new divisions: Te­ther Data, Tether Finance­, Tether Power, and Te­ther Edu. This strategic expansion shows Tether’s aim to broade­n its offerings, including infrastructure solutions, inve­stment opportunities, and educational e­ndeavors.

“We disrupted the traditional financial landscape with the world’s first and most trusted stablecoin, […] daring to kick-start inclusive infrastructure solutions, dismantling traditional systems for fairness,” said Ardoino, the CEO of Tether.

The­ given statement unde­rscores the alignment be­tween dismantling conventional structure­s and the fundamental principles of blockchain te­chnology, which advocates decentralization and financial inclusivity.

Tether Finance Targets Global Accessibility

Tethe­r Data will lead the company in exploring ne­w technologies like artificial inte­lligence (AI) and pee­r-to-peer platforms. Howeve­r, Tether Finance will continue­ to focus on Tether’s existing stable­coin offerings and financial services, aiming to make­ global finance more accessible­. This division allows the company to specialize­, driving innovation while maintaining its core stablecoin busine­ss.

Tethe­r Power represe­nts Tether’s dedication to the­ mining industry, suggesting potential growth in its Bitcoin mining activities. This strate­gy aligns with the company’s substantial Bitcoin holdings, as the company acquire­d 75,354 BTC by March 31, 2024, at an average purchase price­ of $30,305. The mining sector expansion enhances Tether’s significant Bitcoin inve­stments, reflecting its commitme­nt to the digital asset ecosyste­m.

Tethe­r Edu acknowledges the significance­ of education and knowledge sharing within the­ blockchain realm. This division aims to provide educational mate­rials that facilitate a comprehensive­ grasp of blockchain technology and its diverse applications. By offe­ring accessible resource­s, Tether Edu strives to promote­ a deeper compre­hension of this innovative field.

“With this evolution beyond our traditional stablecoin offerings, we are ready to build and support the invention and implementation of cutting-edge technology that removes the limitations of what’s possible in this world,” said Ardoino.

While tethe­r has encounte­red scrutiny regarding the transpare­ncy of its USDT reserve backing, Howe­ver, this restructuring initiative signifie­s a strategic shift, aiming to broaden the company’s pre­sence within the blockchain e­cosystem. The company’s succe­ss in this venture will hinge on its capability to navigate­ these eme­rging domains effectively and e­stablish itself as a dependable­ collaborator.

Related Reading | Bitcoin Halving Soaring Score: Search Fever Reaches Historic Levels of 45

Tether’s $5 Billion Splash Surpass ETFs

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As March unfolds, Tether silently makes waves, with a massive $5.25 billion influx surpassing the combined ETFs that have raked in less than $4 billion this month. Tether’s remarkable surge has largely evaded the spotlight. The issuer of the world’s biggest stablecoin has garnered controversy, with critics raising concerns about its lack of transparency, but its utility in facilitating liquidity cannot be overlooked.

Tether has added $5.25billion in March so far and no-one is talking about it For perspective, the ETFs combined have added <$4billion in March so far

Not long ago, the stablecoin issuer announced that USDT would launch on Celo, a mobile-first and EVM-compatible blockchain network that’s built for the real world and designed for fast, low-cost payments worldwide. Solidifying its position in the stablecoin market, USDT is now live on 16 networks, including Algorand [ALGO], Avalanche [AVAX], Ethereum [ETH], Polygon, Solana [SOL], Tezos, and Tron. 

Additionally, Celo core contributors proposed the use of USDT as a gas currency to streamline transactions and foster efficiency within decentralized applications [dApps], focusing on payments, lending, and more.

The firm is also working closely with the U.S. government to help seize $1.4 million linked to an alleged fraud scheme. The seizure is one of the first instances of recovering USDT from an unhosted wallet, per the Northern District of Illinois U.S. Attorney’s Office. Extending its collaboration with other institutions of the U.S. government, Tether voluntarily joined forces with the U.S. Attorney’s Office in Chicago to assist in recovering these funds, stolen mostly from elderly people across the nation.

Tether Thwart USDT Tech Support Scam

The sophisticated scheme was orchestrated by a group that preyed on victims by convincing them that their funds in bank accounts were in danger on the pretense of being hacked. Under the guise of tech support, these fraudsters coerced their victims to transfer their savings into USDT and forward the funds to a third-party USDT address.

The severity of the situation and the need for swift action have prompted the firm to proactively engage with the authorities and assist in the restitution process. Speaking on the joint action, the CEO of Tether, Paolo Ardoino, stated that the firm remains steadfast in its commitment to upholding the highest standards of integrity and security.

Tether’s USDT Shorting Scheme Exposed

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Tether CTO Paolo Ardoino recalled a situation in the past when hedge funds attempted to short USDT on secondary markets. Shorting is betting against a token with the expectation that its value will decrease. The intention of these hedge firms, according to Ardoino, was likely to create a scenario of a bank run where Tether faces bankruptcy and the USDT value plummets. But as per Ardoino, this strategy failed to have its desired impact. Instead, he claimed that it proved Tether’s resiliency during the crypto meltdown.

Remember when many hedge funds shorted $USDt on secondary markets, trying to cause a bank run? Their only result was proving Tether’s resiliency, while almost the rest of the crypto industry was melting down. Tether was able to redeem and pay 7B USD in 48 hours and more than 20B USD in less than one month. Shorting USDt proved to be an idea as brilliant as accepting FTT as collateral. Misery loves company.

Ardoino’s post referenced the controversial move by Digital Currency Group [DCG], whose founder Barry Silbert once reportedly tried to short USDT stablecoin and unsuccessfully pitched a merger of his Genesis Global with rival Gemini, per court filings. DCG is now battling against its former subsidiary and NYAG.

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Tether's USDT Shorting Scheme Exposed 3

As earlier reported by TronWeekly, DCG alleged unfair play in the recent settlement case between its subsidiary Genesis and the New York Attorney General [NYAG]. According to the then court filing, DCG argued that Genesis had violated U.S. bankruptcy law “by taking value from the underclass and redistributing it to senior creditors under the garb of settlement.”

Tether CTO Mocks DCG

DCG and Silbert each filed separate motions to dismiss the fraud complaint filed against them by New York Attorney General [NYAG] Letitia James. The regulator also amended its original complaint to include new fraud allegations against DCG, its CEO, Barry Silbert, and Genesis. The alleged fraud at Gemini Trust and Barry Silbert’s Digital Currency Group was three times bigger than initially thought, the New York attorney general said in the revised civil complaint.

Amidst the legal entanglement, Tether CTO mocked DCG’s tactic to short USDT, which proved to be as unsuccessful as accepting FTT [FTX native token] as collateral. The largest stablecoin by market value recently expanded its support on the mobile-focused layer-1 platform, Celo. Committed to keeping USDT accessible and secure, the leading issuer has also built a robust blockchain recovery plan.

Tether Sets Its Safety Net In Motion

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The world’s largest stablecoin, Tether, has formulated a solid blockchain recovery plan, fulfilling its commitment to keeping USDT accessible and secure. A recovery plan for a growing blockchain comes in handy during major disruptions in those chains on which USDT is available. This is to ensure uninterrupted accessibility for our holders and safeguard users’ access to their USDT.

Using blockchains as a transport layer, USDT can exist in multiple networks. As of January 2024, Tether’s website lists 14 protocols and blockchains on which the token has been minted. Per the blog post, the recovery tool can migrate the user’s USDT from an unresponsive or unusable blockchain to the recipient address on another supported blockchain. Even though major network failures are unlikely, the risk of technical difficulties still exists.

The growing demand for Tether across multiple blockchains calls for a forward-thinking strategy for managing risks and maintaining resilience. Tether knows holders around the world depend on USDT. That’s why Tether has created these plans to protect your funds and keep operations running smoothly, even during unexpected challenges. As the world of digital currency evolves, Tether is dedicated to maintaining its position at the forefront of digital commerce in terms of stability, security, ease of use, and innovation.

Tether

Recently, USDT charted history when it breezed past the coveted market capitalization of $100 billion, catching the attention of market observers. Although the number of USDT tokens is approximately 99.5 billion, the price of the token is at a slight premium on some exchanges, enough to push the market value to $100 billion.

30% Tether’s USDT Back On Exchanges

The stablecoin has continued to be in the limelight among its market favorites, Bitcoin and Ethereum. While the latter’s respective supplies have moved off exchanges after the ETF approvals, USDT recorded nearly 4% of its available supply coming back to exchanges in 5 weeks.

Data sourced from Santiment revealed that this increase in Tether’s buying power implied that the mid-term 3+ month bull cycle [starting back in October] could still have some legs, particularly with just 79 days until the Bitcoin halving, estimated to occur on April 18th.

Bitcoin Holders Ditch Wallets? 730K Drop Post ETF Nod

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There is a notable shift among Bitcoin holders. Following the SEC’s approval of 11 spot ETFs, the number of non-0 BTC wallets was at its highest on January 20th at 52.95 million. This is credited to the increased interest in holders having exposure through ETFs rather than owning the actual token. While this is a positive indicator as it reflects investors’ preference for crypto assets, Santiment noted a dip in these holders’ cohorts. 30 days into the ETF nod, 729.4K fewer Bitcoin wallets are now holding more than 0 BTC.

On one side, the count of Bitcoin owners shows no significant change, while those holding the leading alternative cryptocurrencies Ethereum [ETH] and Tether [USDT] have reached their highest points at 114.95 million and 5.22 million, respectively. However, for any future assets, a decrease in the number of active wallets is expected, as they might prefer the investment route instead of holding the asset directly.

For any future asset with ETFs, there would be an implied drop in active wallets on their respective networks.

The other day, the Bitcoin ETF hit its highest-ever daily volume and inflows, according to an earlier report by Santiment. The 7 largest ETFs, including FBTC, BITB, HODL, ARKB, and BTCO, raked in a combined volume of roughly $7 billion.

Bitcoin
Bitcoin Holders Ditch Wallets? 730K Drop Post ETF Nod 6

For the record, BTC ETFs can hold both actual Bitcoin and futures contracts. They allow investors to invest in the price without the need to directly buy, store, and secure the digital assets themselves. High ETF activity shows market interest but doesn’t impact BTC supply & demand directly.

Speculative Demand For Bitcoin Surge

Simultaneously, the coin’s open interest on centralized exchanges has reached unprecedented levels, crossing over $10 billion for the first time since July 2022. While money entering into digital assets is no surprise, the rapid surge in the speculation of derivatives is noteworthy. An increase in OI means the investors are taking more risks with their profits, a clear signal that the crowd euphoria has not subsided.

Besides BTC, other top climbers to watch out for are Ethereum [ETH], which has $5.59 billion in open interest. Solana’s SOL: $1.62 billion in open interest; and Chainlink’s LINK: $549 million in open interest.

Stablecoin Surge: $150B Market Cap Signals Growth Spurt

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The idea behind “stablecoin” seems simple, it’s digital money with a fixed value. But this idea has been called into question by recent comments made by Adrian Orr, the governor of New Zealand’s central bank, who described it as inconsistent. As per the parliamentary session reported by Bloomberg, Orr opined that stablecoins are intrinsically unstable since their legitimacy is solely dependent on the reliability of the organization that supports them.

Orr emphasized that this sense of stability is deceptive, grounded more in perception than in actual financial circumstances. He said,

“Stablecoins are the biggest misnomers and oxymorons. They’re only as good as the balance sheet of the person offering that stablecoin.”

Orr has good reason to be cautious. The financial soundness of the organization that is issuing these coins has a significant impact on their stability. Examples of this vulnerability include the inability of TrueUSD (TUSD) and USDC to sustain their pegs as a result of concerns about their capacity to fund stablecoins with fiat currency reserves.

TrueUSD, for example, saw its value fall below the $1 peg due to doubts about its capacity to redeem its stablecoins. In a similar vein, USDC dropped to about 95 cents on the dollar after it was discovered that a failing financial institution was holding large reserves. These incidents highlight the vulnerability of cryptocurrencies and the dangers associated with their reliance on centralized organizations.

On the other hand, the stability of conventional fiat currencies, such as the New Zealand dollar, is derived from parliamentary authority and supervision by autonomous central banks. To inspire trust in consumers and investors, these organizations work hard to keep inflation rates steady and low.

Recognizing the growing concerns over stablecoins, multiple sectors—including academia and the Federal Reserve—are working together to create mechanisms that guarantee their stability. Howard Lutnick, the CEO of Cantor Fitzgerald, whose company manages funds connected to Tether, a well-known token issuer, has shown confidence in Tether’s reserves and confirmed that they are in control of the assets they assert.

Stablecoin Market Expansion

The stablecoin market is growing, which means that more coins are getting into circulation. According to recent data, Tether (USDT) continues to lead its competitors in this space, holding a market share of over 60%. USD Coin (USDC) and Binance USD (BUSD) follow.

Furthermore, stablecoin trade volume has grown; daily average transaction volumes have reached $200 billion in recent months. This growing pattern shows how Bitcoin is being used more and more in a number of industries, such as trade, remittances, and applications related to decentralized finance (DeFi). Due to the growing demand for digital assets with stable prices, expectations for the cryptocurrency market are rising despite recurring worries about the stability and transparency of some coin issuers.