September 26, 2022

104 wallets control 70% of Tether's turnover

An Intotheblock study shows that $ 2.8 billion USDT can be concentrated in the hands of a narrow circle of people.

$ 2.8 billion USDT is concentrated in 104 wallets,which makes up 70% of the stablecoin turnover, Intotheblock analytical company reports. Beincrypto experts believe that such a concentration of USDT is not an accident and carries a hidden risk to the market.

“The concentration is extremely high. With $ 2.8 billion focused on 104 wallets, it's hard to believe that this happens by itself ... If this house of cards ever collapses, the damage may turn out to be unpredictable, ”writes Beincrypto.

Bloomberg previously published another study. According to Coin Metrics, in the summer of 2019, 318 wallets accounted for 80% of the USDT volume.

However, Coin Metrics co-founder Nick Carterexplained that in such a concentration there is nothing surprising. According to him, Tether holds the largest digital money trading venues, as well as brokers serving Chinese investors and high-frequency traders.

The main reason for concern isthat usdt is probably not backed by dollars in a 1k1 ratio. In the spring, Tether updated the company's policy. Now stablecoin can be backed by cash equivalents and other assets besides the US dollar.