Tether (USDT) Approaches $100 Billion Market Cap with $10 Billion Increase in Three Months
Tether (USDT), the stablecoin issuer, is close to reaching a market cap of $100 billion after its valuation surged by approximately $10 billion in the past three months. According to CoinGecko, USDT’s total market cap has grown from $84 billion on October 15th to over $94 billion on January 15th.
Denial of Money Laundering Claims
Tether recently refuted allegations made by a United Nations agency that accused the stablecoin of being frequently used by criminals for money laundering and fraud in parts of Asia. A report from the United Nations Office on Drugs and Crime (UNODC) stated that bad actors in East and Southeast Asia prefer using USDT on the Tron (TRX) blockchain due to its anonymity, lower fees, and stability. Tether, however, denies these claims and emphasizes its collaboration with law enforcement agencies to track and monitor transactions.
Tether’s Bitcoin Accumulation
Tether continues to accumulate Bitcoin (BTC) and has increased its reserves of the flagship cryptocurrency to $2.8 billion. According to CryptoQuant, Tether held only $1.6 billion worth of BTC in August, making it the 11th-largest BTC-holding entity globally at that time. Currently, Tether holds around 66,400 BTC.
Hot Take: Tether’s Growing Dominance Raises Concerns
Tether’s rapid growth is raising concerns within the cryptocurrency industry. With its market cap approaching $100 billion, Tether’s influence as a stablecoin becomes increasingly significant. However, questions about its transparency and regulatory compliance persist. The accusations of money laundering highlight potential risks associated with stablecoins and the need for robust oversight. As Tether’s dominance expands, regulatory scrutiny and investor caution will likely intensify to ensure the stability and integrity of the crypto market.
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