Celo, a low-fee, usability-focused blockchain, has approved using Tether’s USDT, a dollar-pegged stablecoin, to pay transaction fees. The passed governance proposal stated this functionality would simplify the transaction experience for users, who only need to hold the USDT stablecoin in their wallets to move value using Celo’s network. Celo Passes Governance Proposal Enabling USDT as […]
Bitcoin News
TRM Labs Report: Tether’s USDT Was the Go-to Stablecoin for Illicit Activities in 2023
A report issued by TRM Labs indicated that Tether’s USDT, the largest stablecoin in the cryptocurrency industry, was the preferred stablecoin used for illicit transactions during 2023. TRM Labs alleges that 1.6% of USDT’s volume was linked to illicit activity last year, with .3 billion worth of USDT used in illegal transactional flows. TRM Labs […]
Bitcoin News
UK, US Probe $20B in USDT Transfers by Sanctioned Russian Crypto Exchange
The U.K. and the U.S. are reviewing tether transactions, valued at billion, processed by the sanctioned cryptocurrency exchange Garantex. Digital currency transactions and crude oil sales are believed to be a significant source of foreign currency for Russia. Russia Sanctions Busting The U.K. and the U.S. are reportedly reviewing cryptocurrency transactions valued at […]
Bitcoin News
Tether Launches USDT on Celo Targeting Increased Usability
Tether, the company behind the issuance of USDT, the largest stablecoin in the cryptocurrency market, has announced the launch of its currency on Celo, an EVM-compatible blockchain. Paolo Ardoino, CEO of Tether, stated that this move was focused on enhancing the “usability and accessibility of Tether for millions of people.” Tether Announces USDT’s Launch on […]
Bitcoin News
Nigerian Users Criticize Binance for Imposing Exchange Rate Caps on USDT to Naira Transactions
Some Nigeria-based users of Binance’s peer-to-peer platform have blasted the crypto exchange’s decision to block or remove traders quoting USDT to naira exchange rates exceeding NGN1,802. Binance says it has the right to remove “users behaving in a malicious or manipulative way.” The Nigerian Currency’s Woes Some Nigerian users of Binance’s peer-to-peer (P2P) platform have […]
Bitcoin News
Stablecoins Surge: USDT Leads $400 Million Inflows, Signaling Investor Confidence
The cryptocurrency industry has witnessed a significant change in the movement of stablecoins, offering valuable observations into the evolving dynamics of the market. Recent data from IntoTheBlock and CryptoQuant has shown a surge in stablecoin inflows into exchanges, reaching record highs in January.
Notable inflows were observed on January 2nd (8 million), January 3rd (9 million), and January 26th (3 million). However, this trend has since reversed, with outflows dominating the market.
On January 30th, there was a substantial outflow of 2 million, marking the second-highest daily outflow recorded in the month, following the 1 million outflow on January 19th.
USDT Leads Stablecoin Rally, But Caution Persists In Crypto Market
An analysis of the 24-hour trading volume of the top stablecoins on CoinMarketCap reveals that Tether (USDT) and USD Coin (USDC) collectively accounted for approximately 90% of the total volume. Tether, in particular, has been dominant in terms of flows, with a 24-hour trading volume exceeding billion, while USDC’s volume stood at around billion.
Taking a closer look at the flow of USDT through CryptoQuant, it was found that there was a substantial inflow of 3 million on January 26th, followed by a prevailing trend of outflows, with over .4 million observed at the time of writing.
Experts suggest that the rise in stablecoin inflows onto exchanges, particularly the 8 million on January 2nd, could indicate traders’ and investors’ readiness to participate in the market or their desire to safeguard their funds during uncertain times.
Conversely, the shift towards outflows may signal caution or preparation for potential market volatility. Additionally, the substantial inflow of stablecoins, especially USDT, could indicate increased buying power and intentions to establish positions in the cryptocurrency space.
Stablecoins Surge, Signal Investor Preparation
The increase in stablecoin inflows onto exchanges can be interpreted in two ways. Firstly, it may indicate that investors and traders are preparing to enter the market. By moving their funds into stablecoins, they can quickly transition into other cryptocurrencies when they perceive favorable opportunities. This suggests a readiness to participate and take advantage of potential market movements.
Secondly, the rise in stablecoin inflows may also reflect a desire to keep funds in a secure manner, particularly during uncertain times. Stablecoins offer stability by being pegged to a specific asset, such as the US dollar, which can be appealing to investors seeking to protect their capital in times of market volatility. This cautious approach can be seen as a way to safeguard funds and mitigate risks in an unpredictable market.
Tether Records Nearly Billion Profit
Meanwhile, Tether announced a “record-breaking” .85 billion in quarterly profits as the market capitalization of its main token, USDT, approached 0 billion.
According to a blog post by Tether, the interest gained on the company’s enormous holdings in US Treasury, reverse repo, and money market funds—which support the USDT stablecoin—account for around billion of the earnings in the most recent quarterly attestation report that was released on Wednesday. Everything else was “mainly” due to the growth of Tether’s other assets, like gold and bitcoin (BTC), the stablecoin issuer said.
Featured image from Wccftech, chart from TradingView
Stablecoin Market Cap Climbs $4.85 Billion in 30 Days; USDT, USDC, FDUSD Spearhead Growth
In the past month, data reveals a significant increase in the combined market capitalization of leading stablecoins, rising from 1.71 billion to 6.56 billion. The top two stablecoins, tether and usd coin, experienced notable expansions in their supplies, with increases of 4.8% and 7.2% respectively.
Stablecoin Economy on the Rise
Over the last 30 days, the stablecoin market experienced a growth of approximately .85 billion, based on data spanning from Dec. 30, 2023, to Jan. 30, 2024. The top stablecoin by market capitalization, tether (USDT), witnessed a 4.8% increase in its supply, reaching .91 billion. Tether is now just 4.09 billion short of achieving a milestone of 100 billion tokens in circulation.
Circle’s usd coin (USDC) not only experienced a rise in supply, but its growth, at 7.2%, surpassed that of USDT in the past month. As the second-largest stablecoin by market cap, USDC now boasts a net worth of .50 billion, a climb from .71 billion just 30 days earlier. Following several months of redemptions, USDC has now observed two successive months of growth in token supply.
Over the last month, Maker’s stablecoin DAI experienced a slight decline, falling by 0.8%. Positioned as the third-largest stablecoin in terms of market valuation, the decentralized finance (defi) stablecoin, DAI, holds a market capitalization of .19 billion. Occupying the fourth spot among stablecoins, first digital usd (FDUSD) witnessed the most significant surge in supply, escalating by 42.8%. Currently, FDUSD’s market capitalization stands at .57 billion.
In fifth place is trueusd (TUSD), holding a market capitalization of approximately .47 billion. This past month, TUSD experienced a sharp decline in supply, diminishing by 30.6% over the course of 30 days. TUSD also had some stability issues with its intended dollar-peg this month dropping to the .97 range on Jan. 17 and Jan. 26, 2024.
Tron’s USDD experienced a modest increase of 1.1%, while the frax dollar (FRAX) recorded a slight decrease of 0.1%. In the past month, Paxos’ USDP witnessed a decline of 4.3%, whereas Paypal’s PYUSD achieved a notable rise of 13.6%. Meanwhile, the tenth-ranked stablecoin, alchemix usd (ALUSD), saw a decrease of 0.9%.
As we wrap up this month’s episode in the stablecoin saga, a vibrant clash of forces akin to those seen in 2023 has influenced most stablecoins beneath the top trio. USDT, USDC, and DAI have held their ground, while emerging players like FDUSD and PYUSD are ascending in the hierarchy. Meanwhile, former frontrunners such as BUSD and GUSD have dropped out of the top ten. This path, characterized by fluctuations and milestones, echoes the wider story of the evolving crypto economy.
What do you think about the stablecoin economy’s growth during the first month of 2024? Share your thoughts and opinions about this subject in the comments section below.
EchoLink Launchpad on LBank Ends With Over 130M USDT in Investment, $ECHO Set for Listing
PRESS RELEASE. Following the triumph of its third Launchpad initiative with ACGN Protocol, LBank has accomplished yet another milestone by concluding its fourth Launchpad event featuring EchoLink.
This innovative project marks a significant breakthrough in Decentralized Physical Infrastructure Networks (DePIN) and the Internet of Things (IoT) sectors. EchoLink leverages a unique Proof of Device Work (PoDW) mechanism, revolutionizing data interaction. The event successfully raised 130,425,381 USDT from 74,164 participants, underscoring the escalating interest in this dynamic sector.
The native token of EchoLink.Network, $Echo, is set to debut on LBank and commence trading on January 26th at 06:00 (UTC), symbolizing a pivotal moment for this burgeoning ecosystem.
Background and Significance
EchoLink, a DePIN-oriented IoT oracle on the Solana blockchain, acts as a transformative gateway for a multitude of IoT devices. Beyond being a bridge, it amplifies device capabilities, capturing, measuring, and validating work through an innovative PoDW mechanism. This transcends conventional approaches, reshaping data interaction fundamentally.
Central to EchoLink is its commitment to data privacy and security. Utilizing Zero-Knowledge/FHE technologies, the project cloaks data, ensuring integrity when reaching oracle nodes. These nodes, equipped with EchoLink’s unique proof mechanism, assess rewards for each device unit seamlessly, bridging effort to value.
EchoLink provides a comprehensive toolkit, merging software SDK and hardware design, laying the groundwork for diverse DePIN projects. It represents more than infrastructure; it’s the foundation for future IoT blockchain integration, advancing towards a world where data flows securely, and reward systems align with genuine contributions.
Participation Rules for $ECHO
Participation rules for the $ECHO Launchpad mirrored the successful model of prior events. LBank calculated investment quotas based on users’ daily average holdings of mainstream cryptocurrencies across various accounts over a specific period. Eligibility required completing at least one trade on LBank within a designated time frame.
Official Statement and Listing Details
An LBank spokesperson acknowledged overwhelming community engagement for EchoLink. The $ECHO Launchpad rules strategically rewarded active users, drawing from prior successes. Official listing details for $ECHO are as follows:
- Token Distribution Time: January 25th, 13:00 (UTC)
- Trading Time: January 26th, 06:00 (UTC)
- Withdrawal Time: January 28th, 06:00 (UTC)
About EchoLink ($ECHO)
EchoLink, a pioneering project in DePIN and IoT on the Solana blockchain, bridges the physical and digital worlds. The PoDW mechanism transforms data interaction, ensuring privacy and security. It’s a step towards a decentralized future, fostering a transparent and community-driven ecosystem.
For media inquiries, please contact:
Eddy Wang
PR Manager, LBank
Email: eddy.wang@lbank.com
This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.
Tron Refutes UN Study Findings Linking TRC-20 USDT to Bad Actors
The Tron Decentralized Autonomous Organization (DAO) has rejected a United Nations assessment which suggested that bad actors are behind most tether transactions facilitated via its protocol. It also sees its over 50% share of the USDT stablecoins in circulation as a “testament to the superior trust bestowed upon the Tron blockchain by the global community.”
UN Says Bad Actors Targeting TRC-20 USDT
Tron decentralized autonomous organization (DAO) has refuted parts of a United Nations (UN) study which asserts that USDT transactions facilitated via its TRC-20 protocol are mainly performed by bad actors. In a statement, Tron DAO said it actively engages on-chain forensic partners to exchange information regarding transactions on the blockchain. Tron implied that this step helps it block or stop malicious actors from using the protocol.
#Tron wholeheartedly supports the proposal of the United Nations, but we have different views on the professional facts and handling methods of blockchain technology. We welcome you to refer to this report. https://t.co/LF4ovqwKnK
— H.E. Justin Sun 孙宇晨 (@justinsuntron) January 19, 2024
As reported by Bitcoin.com News recently, the UN’s study suggested that money launderers and fraudsters in Southeast Asia are increasingly using the stablecoin USDT when making payments or transferring funds. A regional representative of the world body claimed that a lack of relevant regulations could be the reason why tether has become the preferred choice for bad actors.
However, in its statement, Tron said while it agrees with the UN’s position on the use or misuse of stablecoins, it nonetheless disputes the suggestion that bad actors are the sole reason why TRC-20 stablecoins have become more popular.
“TRC-20 is indeed the world’s most popular on-chain settlement protocol by USDT circulation with over 50% of the global market share, followed by Ethereum. This market share is a testament to the superior trust bestowed upon the Tron blockchain by the global community,” Tron DAO said.
Nevertheless, Tron said it cannot comment on behalf of third parties like USDT issuer Tether. Just like Tron, the stablecoin issuer has also issued a statement rejecting some of the UN’s findings. It has similarly touted its working relationship with global law enforcement agencies as proof that it is not enabling bad actors as alleged in the report.
What is your reaction to Tron’s rebuttal of the UN study findings? Let us know what you think in the comments section below.
Bitcoin Accumulation: USDT Issuer Tether Goes On Massive 8,888 BTC Buying Spree
In an encouraging development for the crypto space, Tether, the issuer of the world’s largest stablecoin USDT, has doubled down on its Bitcoin investment momentum by acquiring a staggering 8,888 BTC, further diversifying its portfolio.
Tether Increases Its Bitcoin Holdings
Tether has recently made its third largest Bitcoin purchase, as the stablecoin issuer added a total of 8,888 BTC valued at 0 million at the time of purchase. This brings its total BTC holdings to 66,465 BTC, valued at .81 billion with an average buy price of ,353.
This transaction was captured by BitInfoCharts data, which also showed the previous amounts of BTC accumulated by the blockchain-enabled platform. This recent purchase follows Tether’s Bitcoin investment strategy, in line with its vision to continuously strengthen its reserves by accumulating Bitcoin.
Earlier in May 2023, the stablecoin issuer announced in a blog post that it would regularly allocate 15% of its net realized operating profits toward increasing its BTC reserves. As of the end of March 2023, Tether held approximately .5 billion worth of cryptocurrency, a .3 billion difference from its total BTC holdings presently.
According to reports from Dune Analytics, Tether has become the 11th largest Bitcoin holder, with Microstrategy, an American business intelligence service, surpassing Tether’s holdings with over 189,00 BTC accumulated. The other addresses in the top 10 rankings are owned by major crypto exchanges and governments, including Binance, Bitfinex and the US government.
Tether’s decision to double down on its Bitcoin investments signals its confidence in the cryptocurrency’s future trajectory. It also underscores the blockchain platform’s belief in the long-term potential of BTC as it aims to capitalize on Bitcoin’s potential growth by bolstering and diversifying its digital asset reserve.
BTC Accumulation Race Amidst ETF Hype
Tether’s strategic Bitcoin purchase comes at a time when the crypto market is buzzing with excitement over Spot Bitcoin ETFs. Before the approval of Spot Bitcoin ETFs, Tether had steadily increased its BTC portfolio, purchasing substantial quantities of BTC consistently. In March 2023, the stablecoin issuer bought 15,915 BTC and another 4,083 BTC between the months of May and September.
The timing of Tether’s BTC purchase suggests a proactive stance towards potentially seizing the opportunities brought forth by the Spot Bitcoin ETF market and the upcoming Bitcoin halving in April.
In addition to Tether’s large-scale BTC acquisition, Microstrategy is also another major player which has been continually increasing its BTC holdings. The business intelligence software company added a whopping 14,620 BTC to its portfolio in December 2023. At the time, the value of the purchase was about 5.7 million.
Other companies with large BTC holdings include Galaxy Digital and Elon Musk’s Tesla, as well as space exploration company SpaceX.