Tether’s USDT stablecoin discount on centralized exchanges like Binance and Coinbase has reached its highest point in five months. This comes after Tether revealed its collaboration with US authorities, which has sparked criticism from the crypto community.

According to data from Paris-based crypto data provider Kaiko, the discount on USDT is currently evident on major centralized cryptocurrency platforms such as Coinbase, Kraken, and Binance. However, it is not seen on Bitfinex, which is owned by Tether’s parent company.

The cause of the discounts is currently unknown, but Tether has previously attributed price deviations on exchanges to market-making issues. Despite this, Tether has experienced rapid growth this year, with a market capitalization exceeding $90 billion and a 70% dominance among US dollar-pegged stablecoins.

Tether’s collaboration with US authorities has raised concerns within the crypto community. The stablecoin issuer froze 326 wallets containing $435 million of its stablecoin for agencies such as the US Department of Justice, the Federal Bureau of Investigation, and the Secret Service. Tether claims that these actions were taken to combat the illicit use of stablecoins.

While some experts view Tether’s growth as a sign of strong fundamentals, others express skepticism and consider it an unsustainable trajectory. The recent revelations of Tether’s collaboration with authorities have surprised industry figures, including Cardano founder Charles Hoskinson.

This News Article was automatically generated by Bob the Bot (AI)

Information	Details
Geography	North America
Countries
Sentiment	neutral
Relevance Score	1
People	Charles Hoskinson
Companies	Binance, Tether, iFinex Inc, Coinbase, Kraken
Currencies	US Dollar, Tether
Securities	None