After a few successions of bearish trends on cryptocurrency exchange, Tether (USDT) has stood out as the “least risky” crypto token. Only within a year, several crypto giants had to be shut down in U.S. due to regulatory issues, making a perfect opportunity for investors to shift towards pegged coins like Tether.

Digital stablecoin Tether (USDT) Emerges to Stability as “Least Risky”

Key Highlights:

  • Amidst the baking crisis and SEC lawsuits, investors find stability in Tether (USDT)
  • With minimum price fluctuations, investors believe that their money is safer on cryptocurrency exchange than banks.
  • Tether is being coined as “least risky” investment in today’s date, and has climbed among the top three cryptocurrencies.
  • Investors are using USDT for transaction fees, and collateral for bad investments.
  • Tether has dodged regulatory issues from U.S. bodies while its competitors like BUSD and USDC are now struggling.

The Secret of Tether (USDT) Stability

Since its launch in February-end of 2015, the price of USDT has barely fluctuated. Only a handful of times has Tether dropped below $1 mark, and that gives a big reason for investor of USDT. In most recent times, the U.S. Securities and Exchange Commission (SEC) has claimed allegations over several cryptocurrency bodies. Quite a few lawsuits are already being argued in the court, and causing a general concern of safety among crypto investors.

As a result, many are turning their funds towards Tether (USDT) as it is currently claimed as the “least risky” investment choice on the cryptocurrency exchange. Investors are viewing it as a safe choice in May 2023, and primary reason for it is Tether being anchored to the dollar.

Prices of USDT has soared since the beginning of 2023 and peaked $1.0077 on March 12. Currently it is valued at $1.00 and recently touched $1.0018 on May 7. Due to this price stability, the cryptocurrency is ranking among the top three tokens, competing with the likes of Bitcoin and Ethereum.

Is USDT a Preference over USD?

We do not believe that such is happening anytime soon considering that investing in USDT is riskier than keeping USD. However, Tether is being used less of an investment but more as a security in the long run. Since the stability of the cryptocurrency is high, investors are keeping USDT stored for using it as collateral in unlucky trades.

Tether (USDT) is also being used to pay for gas fees and other co-related fees required for making a transaction on blockchain networks. Since the token is pegged to the dollar and stays within the range of $2 and $0, there is a little possibility of losing this investment. The chances of great price surges are not what most investors are using USDT for.

Founder of AK Jensen Group, Anders Kvamme Jensen debunks that:

“Tether is seen as less US-oriented, meaning lower regulatory risk.”

He continues by saying that investing in USDT is not in favour of the U.S. regulatory bodies, and the banking crisis is a threat to the dollar, leading to “hyper-bitcoinisation.”

Even though USDT is ranking high on the cryptocurrency exchange, their primary competition is with coins like Binance USD (BUSD), USD Coin (USDC), and Dai (DAI). All of them are under trouble from U.S. regulatory bodies which has led to Tether being titled as “least risky” asset.

About Aritra

Aritra is an experienced cryptocurrency analyst with a deep understanding of market shifts. His proficiency in identifying investment opportunities has helped him build a strong sense of the Web3 world. Aritra is a trader turned writer and presently predominates in the crypto writing industry as he can guide new investors as well. When he is not decoding crypto jargon, he can be found streaming on Twitch.

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