Tether Faced With Transparency Concerns As PAX Readies To Take Over
PAX is showing all signs go to take over the stablecoin leader.
Is Tether On Its Death Bed?
Tether’s position as the stablecoin leader is now under threat. USDT’s position is being challenged due to doubts regarding the dollar reserves which are alleged to have been overstated. Secondly, we have a suspicion that the stablecoin lacks an acceptable level of openness.
The industry might look for other options considering that have been more than 50 stablecoins to crop up. In the coming days, the market is expected to witness the entry of even more new stablecoins. OKEx and Huobi exchanges recently added new stablecoins to their platforms. The stablecoins added include PAX, GUSD, TUSD and USDC.
Official data shows that PAX has risen to accumulate a market cap of $21.72 million. TUSD is ranked second with a cap of $19.62 million while Gemini’s GUSD has $3.47 million quoted as its cap. USDC comes in last with a cap of $1.16 million. Just days after its entry into the market, PAX stands at 63, 206, 483 in supply.
PAX has been developed on the ethereum infrastructure and it was designed to provide all abilities under tether. Additionally, it offers a decentralized accounting option for regulators. With such features, investors have more faith in PAX in comparison with Tether,
According to Charles Caserilla, the founder of Paxos, their standards provide the industry with the ability to make payments in a complete dollar collateralize asset with the benefits of a blockchain system. He added that the standard is a major boost for the assets sector by solving the issue of trust and volatility.
Following the concerns on USDT’s side, the stablecoin has experienced a massive pullout of investors who went iin with over $300 million. Due to the mass exodus, Tether is dangling above dangerous ground. Investors are in panic sell mode while at the same time exploring other available options.
Consequently, Tether has dropped to $0.85 when compared to the dollar on the Kraken exchange platform, while on Binance, it is at $0.96. In the wake of tether’s drop, bitcoin registered about 9% growth.
Some trading platforms are now dropping Tether as they bring in more alternatives. Digifinex recently announced that TUSD will replace Tether on its platform. The firm’s head Kian Shek stated that the decision to drop Tether has been in the works for some time.
At the moment, Tether’s true position is not yet clear and PAX resurgence might just be mere speculations. At the moment, tether’s market cap remains undisputed at $2 billion. In the event it falls, then PAX is best positioned to take over.