Is USDT going to collapse? Bitfinex Tether could bring entire bitcoin market down

Bitmex cryptocurrency exchange is behind USDT stable coin and it has been asked to submit a number of documents to courts. It will have to drag other crypto currency exchanges into this case and explain courts how USDT was issued in first place.

Remember that Tether is issued by a group of exchanges, not one entity.

There are 15-20 other stablecoins so why does USDT matters so much? Bitfinex’s USDT is top 3 crypto in market cap and the most important bridge for China to access crypto currency.

So, does that mean USDT going to collapse? This cannot immediately result in a flash crash but things like these could drag out forever. We do think crash of USDT could trigger the ultimate dump catalyst.

Remember, volume on most cryptocurrency exchanges come from USDT. For instance, USDT accounts for 70 percent of Binance’s volume. Same goes for other popular exchanges. In theory, Bitfinex Tether could bring entire bitcoin market down.

List of documents that must be submitted by Bitmex to court. 🙄#usdt #Bitmex #BTC pic.twitter.com/YxFENDh91j

— Kamaldeep Singh 🔶🔶🔶 (@kamalds) July 12, 2020

Or may be Bitmex will take care of it within next 12 months or so and nothing will happen to crypto currency market.