Cryptoverse-Tether gets a lift from stability doubts

economictimes.indiatimes.com:

tether is winning the race for the title of the crypto world's «least risky» asset. As a regional U.S. banking crisis widens and a regulatory crackdown on crypto firms deepens, investments within the cryptosphere are moving into tokens and coins perceived as relatively safe. Tether is already the top performer among stablecoins — digital tokens pegged to some fiat asset like the dollar — and has seen its market value soar since March. Its value is anchored by a 1-to-1 peg against a cache of dollars and a supply cap at around 85 billion tokens. Demand for the coin has been so strong that its peg has held above 1 since mid-April, hitting 1.002 last week.

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«The banking crisis is fuelling 'hyper-bitcoinisation' — the inevitable endgame that the dollar will be worthless,» said Anders Kvamme Jensen, Oslo-based founder of the AKJ global brokerage and digital asset specialist. That has spurred a flight to top cryptocurrencies such as bitcoin and ether, Jensen said. GRAPHIC — Tether's trust https://www.reuters.com/graphics/FINTECH-CRYPTO/WEEKLY/klvyglqgqvg/chart.png Pegged stablecoins such as tether, meanwhile, are seen more as a store of value and as a tool to facilitate transfers between cryptocurrencies and also serve as collateral for derivative trades. Conor Ryder, research analyst at digital assets data provider Kaiko, says tether's premium reflects emerging trust in both the peg and in its perceived