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Number 3 of the Crypto Money Market Tether, Favorite of Arbitrageists

Number 3 of the Crypto Money Market Tether, Favorite of Arbitrageists

In a report published on May 28, Flipside Crypto analyzed Tether’s effectiveness in the chain to determine that the majority of USDT is used for stock-based arbitrage. Flipside compiled a visual graph of Tether’s activity in the chain and showed that the newly released USDT was filtered by cryptocurrency exchange Bitfinex before its release.

Details in the report

The report pointed out that there was a conflict between parent companies Tether and Bitfinex, which became their primary concern for the NY Chief Public Prosecutor’s Office in April 2019. Bitfinex has been charged with using a $ 850 million fund from Tether to cover the losses of the currently inactive payment processor Crypto Capital.

The report continued to reveal that the USDT has not yet been “burned” or removed from the total market supply.Instead, Flipside claimed that Tether’s primary use was arbitrage on central cryptocurrency exchanges.

According to the report, it is quite clear that most of Tether is used on central exchanges, namely Huobi, Binance and Bitfinex. The constant movement between users and these exchanges reflects the fact that Tether is mostly used for arbitrage.

Users can easily make a profit by buying from one exchange and selling at a higher price in another exchange. Flipside also notes that investors pay higher fees to send USDT directly between personal wallets, as opposed to trading via exchanges to create a faster and more efficient arbitrage in Tether transactions.

Samuel Hegi

Samuel Hegi , who first became acquainted with blockchain technology in 2014, is highly critical of blockchain technology. Samuel Hegi, a journalism graduate from the University of Brighton he is the editor-in-chief of the news portal. Blockchain is love.

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