Digifinex has expelled Tether [USDT], the no.1 stablecoin, and replaced it with TrueUSD. Tether, the stablecoin pegged to $1 has been facing strong rivalry from emerging stablecoins in the market like TrueUSD and Gemini, the brand new stablecoin introduced by the Winklevoss twins. TrueUSD has been listed by many exchanges, which might prove to be a threat to the existence of the stablecoin ranked no.8 by market cap. The coin recently surpassed Cardano [ADA] to be positioned 8th on the list of major cryptocurrencies, however, this news seems to have had no effect on the competition.
Tether got dumped
“I simply don’t believe in tether but I had no choice” but to list it, said Kiana Shek, the co-founder of Digifinex, according to a Coindesk report. She also added that she had been actively exploring ways to dump USDT. She went on to talk about her reasons for choosing TrueUSD over Tether. “Through my research, due diligence, and my communications with the TrustToken team, I have come to appreciate their commitment to industry-leading best practices,” she clarified. She also added that the company worked within the walls of the regulations put up by U.S. Financial Crime Enforcement Network’s [FinCEN] and also the company’s financial account goes through independent verification which is carried out by an outside auditing firm.
Tether is amid several allegations which makes the upcoming rival stablecoins an existential threat to the cryptocurrency. A research from the University of Texas indicated that the virtual currency has been used to manipulate Bitcoin prices, because of which the cryptocurrency cannot be trusted. The study found that as and when the supply of USDT in the market increases, its prices go up simultaneously. Though the research did not confirm price manipulation, it did mention suspicious patterns and correlations.
Given the number of stablecoins that are launched in the market Tether’s competition will only increase. “The risk from Tether and the need for a new USD stablecoin is so great that exchanges have started trying to create their own,” said Stephen Kade, TrustToken co-founder, and COO.
TrueUSD will be live on the exchange on Monday at 15.00 Singapore time. Digifinex has launched bitcoin, ethereum and tether markets for TrueUSD. Both USDT and TUSD will be trading for a while on the exchange before they completely dump the former.
Image via Google
Join our Telegram group