Cryptocurrency Tether’s market valuation crosses $10bn
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Cryptocurrency Tether’s market valuation crosses $10bn

Cryptocurrency Tether’s market valuation crosses $10bn

At the start of the year, it was valued at $4.1bn

Gulf Business

Cryptocurrency Tether’s market cap has crossed $10bn, according to a report from Messari, a tremendous growth for a relatively new currency.

At the start of the year, it was valued at $4.1bn.

It has grown approximately 144 per cent in just six months, a remarkable growth rate for a digital currency that is not as volatile as its peers.

Tether belongs to what is known as “stablecoin”, and the difference between it and free currencies like Bitcoin is that digital currencies like the latter are not valued against anything real and it is supply and demand that affects their value.

Stablecoins such as Tether are assumed to possess a basis that preserves their value in the form of assets stored by the currency operator so that the currency price is fixed and always guaranteed.

Tether has now established itself as the third largest digital currency in the world, preceded only by Ethereum and Bitcoin.

But questions have been raised as to the growth rates of Ethereum and Bitcoin, and other digital currencies, with regards to their ability to cover the value of the currency with the assets they have. Some of them have even refused to conduct audits using independent external parties.

Now, in light of the recent German Wirecard scandal, suspicion may be the logical position of companies dealing in electronic payments in general – which only makes those companies that refuse audits all the more dangerous.

This story originally appeared on MENA Tech

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