Bitcoin Global News (BGN)
January 08, 2019 -- ADVFN Crypto NewsWire -- As we have said
time and time again, 2018 was the year of the Stablecoin.
Simultaneously, it also represented the year that Tether ran into
the most controversy in its’ history. Despite effectively failing
the only attempted audit of its’ cash reserves as well as
essentially never being able to maintain a truly stable value,
right now, Tether still exists and trading of the often-maligned
currency is still supported by certain crypto exchanges.
2019, however, just might be the
year that Tether finally loses its’ spot in the top ten
cryptocurrencies. Today, the news broke that CoinFloorEX, has
separated from its’ parent company CoinFloor which is effectively
the oldest peer-to-peer Bitcoin marketplace that is still supported
by a crypto exchange.
Reportedly, their aim in doing so
is to launch the first Stablecoin derivatives market where
interested traders will be able to use their Tether to purchase USD
Coin with the expectation of the latter currency giving them a
large amount of profit over the long-term.
While, at face value, any sort of
derivatives trading is a risky endeavor, keeping Tether is arguably
more risky than investing in another, newer, possibly less volatile
Stablecoin at this point. Perhaps even more importantly, an
argument can be made for CoinFloorEX having an ulterior motive in
enabling this sort of trading pair.
In a word, it might kill Tether for
good and though some supporters are still around like Bitfinex
executives and Bitfinex die hard traders, many would agree that
doing so could be very good for the future health of the
cryptocurrency markets. At first, we might experience a market-wide
crash, simply due to the coin’s powerful market cap, but over the
long-term, we might have a lot to gain such as an increase in
investor confidence related to how much fraudulent activity is
taking place across the greater crypto market.
All of this, of course, depends on
this derivatives market actually giving most of its’ investors a
profit and therefore, incentivizing them to move their trust away
from Tether for good.
By: BGN Editorial Staff