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USDT can only back 74% of its supply, 89% of people heard of Bitcoin
DAILY
May 01  |  2 min read

May Day

BeQuant Analytics, a daily cryptocurrency market analysis contributor

The market continued to defy gravity and remained well bid, and the news that Bitfinex is planning an EIO picked up a lot of coverage and further boosted Tether. In related news, lawyers confirmed in documents released on April 30, that the company behind USD stablecoin Tether (USDT) only has enough cash to back three-quarters of its increasing supply. As reported by Cointelegraph - “In fact, Tether’s reserves of cash and cash equivalents alone (without the line of credit) would cover approximately 74% of the outstanding amount of tether,” Phillips wrote. The legal battle stems from claims that cryptocurrency exchange Bitfinex, which shares a CEO with Tether, used reserves to plug holes left from a problematic outsourcing agreement earlier in 2018. What's more is that Justin Sun, the CEO of TRON (TRX) has announced that he will be postponing the $20 million USDT rewards program until there is further clarity regarding the recent legislative issues surrounding Tether.

In other news, according to a survey carried out by Harris Poll, on behalf of Blockchain Capital, 89% of the population has heard of bitcoin; this figure is up from 77% in October 2017. The positive trend is especially noticeable among members of the younger generation—between 18-34 years old. Furthermore, “among those aged 18–34: Nearly 1 in 3 prefers Bitcoin to government bonds, more than 1 in 4 prefers Bitcoin to stocks, nearly 1 in 4 prefers Bitcoin to real estate and more than 1 in 5 prefers Bitcoin to gold.”

Elsewhere, the Information Technology & Innovation Foundation (ITIF) released recommendations for policymakers on how to regulate blockchain technology. The ITIF encourages governments to make more effort to support legitimate blockchain innovation and adoption by developing relevant regulations that do not limit blockchain-based applications out-of-hand.

Finally, mixed cryptocurrency transactions now represent 4.09% of all bitcoin (BTC) payments, according to data published by Longhash. Mixed transactions, otherwise known as “CoinJoins” have risen by 300% in the space of nine months. By blending multiple transactions together before they are sent to the recipient, the technique is regarded as a way of obscuring a sender’s details.

Thank you for reading,
The BeQuant’s Analytics team