While the cryptocurrency market is subject to scrutiny in general few tokens and the management behind them have been at the center as of as much controversy as Tether. Tether has, for years, been suspected of being a bitcoin manipulation tool and there was also great debate about whether Tether tokens were backed up with US dollars as their management had claimed. An investigation from the New York Attorney General’s office revealed that not only were not all tokens backed up with US dollars but that they were significant collusion between Tether and Bitfinex in order to cover-up millions of dollars in losses. Following this investigation, both companies are under more scrutiny than ever.
Now, new information from Coin Metrics states that Tether, on average, changes its location every eight days.
The data in question was gotten from a year-long study of the movement of Tether tokens and helped the coin metrics team to better understand the movement of Tether as well as its security within the market.
“The trailing 12 month velocity of @Tether_to on Omni, Ethereum and Tron has rapidly and consistently increased since September and currently sits at ATHs, where on average each $USDT turns over 46 times per year,” Coin Metrics tweeted.
Considering the data, an average Tether talking moves about 46 times in a calendar year and this means every eight days or so, a token will change location from one wallet or exchange to the other. This means that there is a healthy use of Tether tokens within the market and that investors and consumers are still confidently purchasing the tokens and investing them. This goes to show the relevancy of Tether as a token as well as its resilience despite all the scandals and lawsuits. Following the revelation from the New York Attorney General‘s office, many had assumed that it would lose its market dominance but that apparently has not happened.
A number of lawsuits against Tether and Bitfinex have since been consolidated and only time will tell if this fresh batch of accusations will do anything to harm to its market place.