Crypto Catch: Tether struggles as fund withdrawals continue

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Crypto Catch: Tether struggles as fund withdrawals continue

Crypto news, Tether, fund withdrawal from Tether
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Highlights

  • Stablecoin Tether’s woes have continued from last week with massive withdrawals across the network
  • According to public blockchain records, US$1 billion worth of tether was redeemed just after midnight on Saturday
  • Bitcoin grew slightly from yesterday, gaining 2.3 per cent to sit slightly above US$30,000

Stablecoin Tether’s woes have continued from last week with massive withdrawals across the network.

Tether, that functions as the largest bank in the cryptocurrency economy, has paid out a massive US$10 billion in withdrawals since the crypto crash started in early May.

The speed and frequency of withdrawals means Tether is effectively dealing with a slow-motion bank run, as depositors look to transfer their money to better regulated stablecoins.

According to public blockchain records, US$1 billion worth of tether was redeemed just after midnight on Saturday.

Tether published its latest audited accounts, showing that as of late March the company had backed user deposits, comprising of a mixture of US Treasury bills, bonds in other private companies. In addition, there were around US$5 billion in miscellaneous investments.

Also Read: What is United Bitcoin (UBTC)? Why is it up nearly 700% today?

Tether’s woes come shortly after TerraUSD and sister coin Terra Luna saw mass exiting from its holders resulting in a complete crash.

Moving on to market News. Bitcoin grew slightly from yesterday, gaining 2.3 per cent to sit slightly above US$30,000.

Meanwhile, Ethereum also saw improvements from yesterday, climbing 2.6 per cent to US$2,032.

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Data Source: CoinMarketCap.com, based on top 100 cryptos.

Note: Growth from the 24 hours prior to 12:30pm AEDT

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