Tether, the world’s most valuable stable coin by market capitalization and fourth-largest crypto asset by market value, has been experiencing high volatility in its market lately.
The latest development is Tether whales moving over 300 million USDT between July 30 and July 31 in over 25 transactions, as seen on Whale Alert, an advanced blockchain tracker, and analytics system. The last Tether whale transaction occurred at about 11 pm GMT on Friday.
Data from Conimarketcap shows that Tether is now ranked the 4th most valuable cryptocurrency by market cap of $9.996 billion, with a daily volume of about $32.59 billion as at the time this report was drafted.
— Whale Alert (@whale_alert) July 31, 2020
What it means; report by Coin Metrics a year ago, revealed 318 addresses own 80% of the current total supply of the Tether stablecoin. CoinMetrics the crypto analytic firm reported that these addresses own at least $1 million in USDT, showing that just a few players determine its market liquidity and price movements in this fast-growing crypto-asset space.
Tether Whales owning a large portion of total supply isn’t just the news. What makes it notably serious is the extent of the ownership centralization in Tether, raising fears like market manipulation by the hands of these powerful whales.
Recall about two months ago, Nairametrics, outlined a report talking about the organic growth of Tether’s market capitalization as one of the major reasons for the gain Bitcoin (BTC) is presently having in the mid-term. Interest in digital links to the dollar represents the need to handle and store value in the world’s reserve currency without an intermediary.