USDT, the stablecoin issued by Tether Limited has now surpassed XRP and it’s ranked 3rd by market capitalization with $8,832,492,919.
Tether is also usually at the top when it comes to trading volume. Just today, the stablecoin has around $34 billion eclipsing Ethereum or XRP that only has $1.5 billion.
Tether Limited has been issuing a lot of USDT in 2020 going from a market cap of only $4.6 billion to the current $8.8, basically doubling it this year.
The stablecoin seems to be a crucial pillar for the crypto market even though it is surrounded by a lot of controversies.
Is Tether Trusted Now?
At first, Tether Limited claimed that each stablecoin was backed by one U.S. Dollar, however, on March 14 of 2019 the company changed the system to back the tokens using loans to affiliate companies.
Additionally, Bitfinex, one of the biggest exchanges in the crypto market, was accused of using USDT to cover up around $850 million in funds missing since 2018.
Later on, a lawyer from Tether Limited stated that each token is only backed by $0.74 and not in cash only but cash and cash equivalents.
Tether Limited has failed to provide audit reports several times in the past and it’s allegedly manipulating the price of Bitcoin.