Teddy Fusaro, president of Bitwise, one of the crypto index fund managers, has praised the business model of Tether, the company behind the largest stablecoin in the crypto market. Fusaro emphasized that Tether obtained net income numbers close to the ones of traditional institutions such as Goldman Sachs and Morgan Stanley in 2023, with a […]
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A report issued by TRM Labs indicated that Tether’s USDT, the largest stablecoin in the cryptocurrency industry, was the preferred stablecoin used for illicit transactions during 2023. TRM Labs alleges that 1.6% of USDT’s volume was linked to illicit activity last year, with $19.3 billion worth of USDT used in illegal transactional flows. TRM Labs […]
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CryptoSlate’s data analysis found an interesting correlation between Tether’s (USDT) circulating supply and Bitcoin’s price.
The beginning of 2023 saw the USDT supply standing at an estimated 66 billion, dramatically increasing to 91 billion by year’s end. This growth in USDT supply is not isolated but appears to parallel an exciting development in Bitcoin prices.
In the past 60 days, Bitcoin saw a remarkable 61% price surge. Coinciding with this upward trend, an almost daily increase in USDT’s circulating supply has been observed, signifying a potential relationship between these two phenomena.
Earlier in the year, the collapse of Silicon Valley Bank (SVB) caused a significant market correction. In the aftermath of the collapse, Tether exhibited an interesting pattern: there were three successive days of growth, each seeing an additional 75 million added to the supply. While this wasn’t directly correlated with Bitcoin’s price action at the time, it underscores the pivotal role USDT’s supply has in the complex digital assets market.
The data implies a possible connection between the rise in USDT supply and the stability and recovery of Bitcoin’s price. Nonetheless, this correlation doesn’t necessarily indicate causality, and a deeper exploration is required to fully understand the underpinnings of these market movements and their potential implications for future trends.
The post Examining Tether’s impact on Bitcoin’s price performance appeared first on CryptoSlate.
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PayPal and Paxos dominated the news cycle on Monday with the announcement of the launch of the PayPal (PYUSD) stablecoin, but concerns have been raised about the possibility of user assets being frozen in their wallets, as is the case with USDT.
The PYUSD stablecoin issued by Paxos has a condition that is not too welcomed by the crypto community, which has dulled the initial excitement for the launch of the PayPal stablecoin. According to reports, Paxos, a blockchain infrastructure firm that issued the PYUSD has several centralization issues which give them a certain amount of control over user’s wallets.
Information published on its GitHub account reveals that Paxos can freeze or suspend users’ wallets and transfer functions on PYUSD authorization in the case of a security threat. The Paxos freeze feature is quite similar to Tether’s USDT which is able to freeze/blacklist users’ addresses involved in fraudulent activities. Additionally, Paxos can withhold users’ funds and assets, as well as wipe the account clean if the law requires it.
The reactions from the crypto community were instant and not too favorable as investors’ anxiety spiked at the thought of possibly losing their substantial digital assets or having their wallets on lock.
Centralization has always been a touchy subject for the crypto community as decentralized networks are often believed to be more secure and distribute control among network participants rather than a central body.
Paxos has stated that freezing accounts is unlikely to happen often, and the company itself would not execute the process.
Stock price holds above $62 following stablecoin launch | Source: PayPal Holdings, Inc. on Tradingview.com
Global payment giant PayPal recently unveiled its latest innovation, the PayPal USD (PYUSD) stablecoin, on August 7, in collaboration with Paxos, a New-York based blockchain infrastructure company. The news comes as a significant development for the Paxos ecosystem, as the integration of cryptocurrencies into the financial industry continues to grow.
The crypto community has largely welcomed this new development, as investors and traders are gearing up to take advantage of the token and its conveniences. Analysts also predict that popular cryptocurrencies like Bitcoin and Ethereum prices will also benefit significantly from the new stablecoin.
The PYUSD is an ERC-20 token developed on the Ethereum blockchain backed by the US dollar. Launching PayPal’s stablecoin is expected to help make crypto trading and offerings easily accessible on the payment platform.
With PayPal’s user base reaching 400 million in 2022, the PYUSD stablecoin launch will also help facilitate crypto adoption and awareness, exposing a significant portion of the global population to digital currencies.
President and CEO of PayPal, Dan Schulman, commented, “The shift toward digital currencies requires a stable instrument that is both digitally native and easily connected to fiat currency like the U.S. dollar. Our commitment to responsible innovation and compliance, and our track record delivering new experiences to our customers, provides the foundation necessary to contribute to the growth of digital payments through PayPal USD.”
Featured image from HowStuffWorks, chart from Tradingview.com
