Tether Operations Limited (Tether), the organization behind the widely recognized stablecoin, recently disclosed its plans to launch USDT tokens on Kava, a layer-1 blockchain established in 2018. This strategic move aims to offer Kava’s community access to the first, most dependable, and widely deployed stablecoin.
In its blog, Tether announced that U.S. dollar-linked USDT tokens would be introduced on Kava, renowned for its scalability and speed. Paolo Ardoino, Tether’s Chief Technology Officer, expressed enthusiasm about the collaboration, stating that it would grant Kava’s robust community access to the world’s premier, most stable, most trusted, and most extensively used stablecoin.
Ardoino commended the Kava network for its impressive four-year track record of zero security issues, underlining the significance of safeguarding USDT users. By joining forces with the Kava platform, Tether further solidifies its position as the leading stablecoin in the market.
Last month, Kava announced its “Kava 13” mainnet update, which enhanced its infrastructure to provide users with increased security, scalability, functionality, and speed. Tether has been a pioneer in the stablecoin space, with its tokens already available on various networks such as Ethereum, Solana, Algorand, EOS, Liquid Network, Omni, and Tron.
A recent Bloomberg report revealed that Tether Holdings Ltd., the issuer of USDT, had at one point held securities from Chinese companies as part of its reserves. Additionally, CoinGape reported that the dominance of USDT within the Curve 3pool liquidity pool for stablecoins had fueled concerns about the stablecoin’s stability. These concerns led to whales selling off considerable amounts of USDT tokens, resulting in a slight depeg.
On May 12th, CoinGape reported that USDT was down 4.8% to 0.9508 – its lowest level since the 2017 cryptocurrency crash. Boasting the largest market cap of $83 billion, USDT experienced a significant surge in trading volume by 76.45%, achieving $35 billion in just 24 hours.
While the partnership with Kava could be viewed as a significant step for Tether, concerns about the stablecoin’s stability and its reserves cannot be overlooked. Investors must carefully assess market conditions and perform thorough research before venturing into the world of cryptocurrencies. As with any investment, understanding the potential risks and rewards is crucial for informed decision-making and mitigating financial losses.
Source: Coingape
