Sentence | JX kin
Edit | Wen Dao
USDT was issued again. The latest occurred on March 30, the number is 120 million.
Its issuing company, Tether, known as the "Fed" of the currency industry, opened its gates after the "3 · 12" currency market plunged. The floodwaters issued an additional 1.3 billion USDTs, which made it a market value of US $ 6.15 billion. Pushed to the fourth place in the world and dominated the stable currency throne.
The total market value of the 40 mainstream stable currencies in the market is 7.7 billion US dollars, USDT accounts for 80%, and the other 39 stable currencies share the remaining 20% of the market.
The sharp decline in the currency market on March 12 led to a surge in the demand for stablecoins. The market has no longer considered whether there is an equivalent reserve behind the USDT, and the demand for hedging and deposits flocked to the USDT, causing its premium to exceed 10%.
After 2018, the number of stablecoins that entered the market with compliance advantages continues to increase, but neither USDC, HUSD, BUSD, USDK supported by the exchange, nor decentralized DAI, can add up to shake USDT's position.
Since the turmoil in the currency market has exacerbated the market's demand for stablecoins, why does the demand favor USDT with unknown reserves and great risks? USDT is like an unsatisfactory stable currency that can't be done.
The first emergence, extensive circulation, and market habits are the exclusive advantages of USDT, and the “strained” stablecoins with exchange barriers are subject to their own. As a result, they had to work slowly and seek breakthroughs in partners and usage scenarios.
Demand stimulates USDT to issue 1.3 billion in 18 days
According to WhaleAlert data, on March 30, Beijing time, Tether issued another 120 million USDT on Ethereum. This order of magnitude has been issued three times in the previous 6 days. Tether changed the style of issuing 60 million at most in the past, simply Double, 120 million each time.
The total amount of USDT issued based on Ethereum has reached 4.2 billion
Tether's frequent issuance began on March 12. Statistics show that in the 18 days after that day, the company issued at least 19 additional USDTs, amounting to nearly 1.3 billion.
The USDT anchored to the US dollar is like a capital channel to enter the cryptocurrency market. Therefore, Tether is called the "Federal Reserve" in the currency industry. The recent increase in the issuance trend and the recent "flood flooding" type of US dollar supply strategy when the Federal Reserve responds to the epidemic and saves the economy .
Of course, the US dollar is endorsed by the US government, and behind the USDT is the Tether company whose reserves are unknown and have been targeted by the regulator. The plunge on March 12 gave Tether an opportunity to start a "money printing machine".
The panic in the currency market driven by the bitcoin waterfall caused investors to put risk aversion in the first place. The best option is to replace risky assets with USDT and other stable currencies.
The Stable Universal team of the stablecoin HUSD operator analyzed that under the market volatility, some institutional traders returned to arbitrage when the difference between the futures and spot prices was the largest. These new arbitrage funds are also more willing to enter the market through stablecoins. At the same time, in the context of the global crises virus crisis, cross-border payments, remittances, and transfer costs have become higher, and stablecoins that provide convenience for cross-border payments have attracted some out-of-circle funds. These reasons have caused the demand for stablecoins to surge .
After the plunge for the past two weeks, the market has gradually stabilized, but Tether has not stopped "printing money", and 120 million additional issues have occurred four times. The relevant person in charge of OKLink analyzed that the market fell sharply on March 12th, and the “de-leverage situation” including BTC and ETH appeared in the crypto asset market, which led to the shortage of cash flow at the level of miners, borrowing customers and traders. . At this stage, the panic market is basically lifted, so more users will want to use USDT to enter the market for a series of spot and derivatives transactions.
Demand is the best reason for Tether to issue USDT. On April 1, the latest data from Cryptoslate showed that the market value of USDT was 6.15 billion US dollars, and the additional issuance of 1.3 billion brought USDT to the fourth position in the market value of global cryptocurrencies, ranking behind BTC, ETH, and XRP.
The news of the additional issuance of USDT will always be spread among some cryptocurrency enthusiast communities, and each time it will cause a new round of reminders for cautious players, "USDT is leveraging itself again, be careful of thunder." But who will be true Care about this reminder?
After all, the question about the unclear Tether reserve has been going on for several years, and the New York prosecutor ’s investigation of it has not ended, even though the price of USDT once reached 8 yuan in OTC transactions off-exchange half a month ago. The premium rate of more than 10% did not prevent investors in the currency circle from using it to avoid risks.
39 stable coins account for 20% of the market
In the light of USDT, the king of stablecoins, the actions of other competing coins appear bleak.
In fact, when the demand for safe-haven surged, other stablecoins also appeared. Stable Universal said that in March, HUSD's issuance increased by 74.7%, a growth rate far exceeding other compliant stablecoins. CoinMetrics data shows that in the past month, USDC has increased by 55.4%, and PAX has increased by 26.5%.
In the world of stablecoins, in addition to stablecoins such as PAX issued by regulated trust companies, the exchange is also an important force involved in the field of stablecoins. Even the growth of USDT cannot be separated from the promotion of the Bitfinex exchange.
In the list of stable currency market value, behind the USDC, BUSD, USDK, and HUSD, there are backgrounds of head exchanges such as Coinbase, Binance, OK, and Huobi. These "owned" stablecoins are the product of cooperation between the exchange and a qualified trust or asset management company, and have entered the market in succession after 2018.
Comparing to USDT, the biggest advantage of the stablecoins of the exchange system is compliance: there are regulated company operations management, approved by the regulatory agency, there is a legal reserve account, and the audit agency regularly approves the circulation and reserve funds. suitability.
Even so, two years later, the stablecoins blessed by these head trading platforms still cannot shake the status of USDT.
The total market value of the 40 stable currencies listed in Cryptoslate is 7.7 billion US dollars. The USDT family alone has an 80% market share, and the other 39 types only get a total of 20%. On the ranking list of stable currency market value, the second-ranked USDC market value is only 683 million US dollars, which is 11% of the USDT market value.
The turbulence in the market has stimulated the demand for stablecoins. Although it has also boosted the increase of some currencies, the demand seems to favor USDT.
The USDT, which entered the market as early as 2014, firmly controls its first-mover advantage. In less than 6 years, it rushed to the shelves of hundreds of exchanges. In particular, the cryptocurrency market erupted in 2017, and several exchanges have sprung up. Spot trading is on the rise, and any exchange that debuts must have USDT trading pairs.
In contrast, the exchanges that appeared after 2018 are stable currencies. The first to log in must be the currency trading and OTC of their respective main stations, and the pace of spreading out of the station is very slow.
According to the data collected by the non-small number, as of now, 22 exchanges have been listed on the USDC; the number of exchanges on the BUSD, USDK, and HUSD have been 5, 5 and 3, respectively. The number of USDT listings is 184.
If calculated in BTC, on the same exchange, the transaction volume of the stable currency pairs supported by the Exchange is far less than the USDT currency pair. For example, at 5 a.m. on April 1st, Binance ’s 24-hour turnover of BTC / USDT was $ 549 million; BTC / BUSD ’s 24-hour turnover was only $ 26.11 million.
In OKEx's fiat currency trading area, there are 10 USDK merchants and USDT has exceeded 100. On Huobi Global, there are 15 HUSD trading pairs and more than 110 USDT trading pairs.
The above four "sector" stablecoins, no matter the corresponding number of encrypted assets, trading volume, or the number of exchanges logged in, are far less extensive than USDT.
The stablecoins supported by the exchanges are often limited by competition barriers. Simply put, the USDK supported by OK will not be listed on Huobi, and the BUSD supported by Binance will naturally be difficult to go to other major platforms. This virtually limits the outward expansion of the “strained” stablecoins.
Exchange Stable Coin Assault Use Scenario
The USDT, which dominates the throne of stablecoins, despite the risks and criticisms, is still rampant in the market, and there is a look like "You can't see me and can't do it".
Compliance stablecoins with regulatory review will inevitably be unable to issue more unscrupulous issuance like USDT, and they need to come up with some other ways to expand their market share.
Compared with decentralized stablecoins, stablecoins supported by centralized exchanges have deeper capital, resource strength and a wider range of users.
"Dependent" stablecoins are expanding access and usage scenarios of traffic in a cooperative manner, including wallets, payments, and open financial DeFi.
HUSD's operation team Stable Universal introduced to Hive Finance that HUSD has been supported by Huobi Korea, FTX, Tokenlon, SWFT and other centralized and decentralized exchanges and flash exchange platforms; In addition, HUSD has also expanded its functions to the payment field by In cooperation with Alchemy, users can already use HUSD to shop in Singapore, Hong Kong, Dubai and other malls.
Open financial DeFi is also a scenario where stablecoins can play a role. “Recently, dForce ’s Lendf.me also announced support for HUSD ’s deposit interest and mortgage lending.” Stable Universal said.
For USDK, payment, transaction and financial innovation are also the direction of its ecological development. "This premise is focused on risk management and risk control to ensure that ecological expansion will not bring financial risks to the ecology itself." Relevant personnel of the USDK operator It said that USDK will also launch more digital asset exchanges, including DEX, and the direction of the decision is whether other platforms can bring value to USDK and create more convenient application scenarios for users.
At present, USDK has reached cooperation with more than 20 wallets and projects around the world. "This makes USDK not only a trading medium, but also used for value storage and payment." The above-mentioned person in charge said that USDK will also be used in derivatives, The layout of the DeFi field, "Of course, the premise of all layouts is that the risks are controllable, and each step of the ecological layout must be analyzed before the feasibility can be implemented."
For most stable coins on the market, it is still difficult to shake USDT's position in a short time. Although USDT took the lead in completing the market construction from 0 to 1, the issuance of additional issuance and unclear reserves still planted hidden risks of systemic risks for the entire market. It will be a blessing for the entire market if the stablecoin market can be reshaped under full competition.
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