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June 2011

Tether (USDT) Accidentally Creates $5 Billion in Crypto

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Tether

Tether

Stable coins, which are backed by fiat currency, have become an integral part of the crypto ecosystem over the past couple of years, and in that regard, Tether (USDT) is possibly the most well known. However, the very fact that it is backed by fiat makes it possible for it to be prone to certain errors, and that is exactly what happened yesterday when the team behind USDT made a mistake that had an effect on the wider crypto market for some time.

Administrative Error

In an astonishing development, the members at Tether transferred $5 billion worth of USDT tokens to the TRON Blockchain from Omni Layer, instead of the $50 million that they had originally meant. All of a sudden, the market was flooded with billions of dollars in Tether that had been created out of the thin air due to an administrative error on the part of Tether team members.

However, the team got to work quickly, and just four minutes after the transfer had been made, $500 million worth of Tether tokens were destroyed. Later on, $4.5 billion worth of token were burned in order to neutralize the error that had occurred in the first place. The problem emanated from Polinex, a highly popular and well-regarded crypto exchange. Tether had actually requested the exchange to take care of the swap, and that is when the error took place. Polinex clarified the issue in a statement.

>> Bitcoin Tumbles Below $10K Mark as Crypto Market Turns Bearish

On the other hand, the Chief Technology Officer of Tether, Paulo Ardaino, and crypto exchange Bitfinex stated that they proceeded to burn the tokens quickly enough. He took to Twitter and shared a tweet in which the burn transactions of Tether had been recorded. However, he conceded that such an error could have had a debilitating effect on the entire crypto market. It is the sort of error that can always happen when it comes to currency generation in which there is a human element, but such things usually do not happen with traditional cryptocurrencies.

At the time of writing, Tether is trading higher by 1% at $1.

Featured image: DepositPhotos © REDPIXEL

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Ethereum Drops to $200 Levels as Crypto and Global Markets Crash

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Ethereum

Ethereum

Ethereum (ETH) price has continued to fall after a dreadful weekend, which saw the price drop to around $198, wiping out last week’s gains. The cryptocurrency is currently trading slightly above the $200 support level and faces a nervy week in which it could drop as low as $170.

Ethereum Drops to $200 as Crypto Markets Crash

The coin has had a stellar year to date, having started the year at $130. It reached $280 in mid-February, outperforming even Bitcoin (BTC) in its percentage climb. However, there has been a market-wide sell-off as of late, with Bitcoin falling below the $8,000 level in the last week of February. ETH shed $50 and dropped to $220 and is continuing to suffer.

Following the massive market-wide sell-off, the combined market capitalization of cryptos has dropped from $264 billion to around $226 billion. This is because of growing market concerns that coins will lose most of the gains they have accumulated since the beginning of the year. Since cryptocurrencies are volatile assets, it is important to note that a 20% move in either direction is something to expect from a near-term perspective.

Cryptocurrencies Impacted by Crashing of Global Markets

In the event that ETH rebounds from its current level, it could likely test the $219 resistance level in the short-term, although this will need a surge in volume as a catalyst. The most important thing to note is that the decline in crypto prices cannot be compared to what global markets are experiencing.  However, for Ethereum, the concern is whether bulls are in control of the markets or whether the crashing of global markets will continue to impact the coin.

>> How the Bitcoin Halving Could Affect BTC Price in the Near-Term

This year, Ethereum has made some progress, and the launch of ETH2.0 has been boosted by the rollout of technical improvements. ETH2.0 will be a significant upgrade for the network, as it will add new features and shift to a Proof of Stake consensus.

Featured image: DepositPhotos © sadsadang

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Ripple Reports Major Growth in XRP Sales in First Quarter

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Ripple

Ripple

American financial technology firm Ripple, which is responsible for the development of the cryptocurrency XRP, has declared its fiscal first-quarter results.

The company, which was founded in 2012, is the largest holder of XRP, the third biggest cryptocurrency in the world, and is based in San Francisco, California. It has offices located around the world. The currency XRP, in itself, is decentralized. According to the Q1 2019 results, the company reported major growth in XRP sales, and that is positive news for the broader crypto market, which has been largely subdued this year.

XRP Sales

The sales of the billions of units of XRP held by the company is its biggest source of income, and in the first quarter, Ripple sold XRP for $169.42 million. However, it is far more important to note that out of those total sales, $61.93 million worth of XRP was bought by institutions and this is a clear indicator that some major players in the financial sector might finally be moving into crypto.

XRP is supposed to be used as a bridge currency for international payments, and so it is not surprising that institutions have bought the cryptocurrency. More importantly, the total sales reflect a rise of as much as 54% in XRP sales from the previous quarter.

>> Nike to Launch Crypto Called Cryptokicks? Trademark Application Hints Yes

Beyond the Numbers

Although the quarter on quarter growth in sales is certainly a huge breakthrough for the company, it needs to be pointed out that growth in year-on-year sales in XRP is not significant at all. In the same quarter in 2018, Ripple sold $167.7 million worth of XRP and once compared with the figures of the last quarter, the overall growth is merely a little over 1%.

In addition to that, the volume of XRP trade on a global level declined on a quarter-on-quarter basis. In the previous quarter, the total traded volume was $54.82 billion, while in Q1 2019 it stood at $53.85 billion. This reflects a 2% drop in traded volume. However, it cannot be denied that it has not been a particularly great year for cryptocurrencies and hence, the quarter-on-quarter sales growth is being looked upon in a positive light.

Featured image: DepositPhotos @ adriantoday

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