Over the past couple of days, the wallet address owned by the Kraken exchange has been flooded with Tether (USDT). The Kraken exchange is one of the very few trading platforms where traders can convert their USDT tokens to US dollars.
At the time of writing, the wallet balance of the exchange is 46.98 million USDT. According to the Tether Rich List, the wallet address of Kraken is currently the 8th most valuable wallet holding Tether (USDT).
About two weeks ago, Kraken was ranked very low on the Tether Rich List. The exchange was at the 22n spot. It was even holding USDT tokens less than half of what it’s currently holding. Between December last year and early October, the wallet balance of Kraken was fluctuating within the range of 10M and 24M.
Traders Wish to Exchange their Tether (USDT) for USD
The present balance of the exchange is an extraordinary outlier. Some analysts have claimed that the influx of USDT in Kraken is because traders want to exchange their USDT to USD. The value of the digital currency has been falling sideways lately. It has declined below its historical mark. The Tether (USDT) is supposed to be at $1 or very close to $1. However, over the past weeks, the value of the coin has declined significantly.
Recently, the value of the coin even dropped to the 88 cents levels. This has caused great concerns amongst its investors. This is the major reason why they are flooding the Kraken exchange to convert their USDT to U.S dollar.
Trading Platforms that Offer USDT to USD Trades
There are only a few digital currency trading platforms where Tether (USDT) can be converted to U.S dollar. The Kraken exchange is one of those exchanges. Other exchanges that offer direct trades between Tether (USDT) and USD are Bittrex and Bitfinex. So the flooding of these exchanges with USDT is a sign that the digital currency market might still harbor doubt about the recovery of USDT.
Kraken offers only one USDT trading pair, and that is USDT/USD. This means traders can’t trade USDT for any other digital currency on the platform.
According to Tether’s whitepaper, token holders can redeem their USDT for USD by returning them to Tether Ltd. However, a lot of users have not been able to do so over the past months. The founder of Spiga – Jeff Perrin, said he tried redeeming his USDT for USD via the site of the firm back in February. He said he provided all the required KYC details. However, he did not get any response from the customer support.
Tether (USDT) is holding the number 8th spot on the list of top digital currencies by market cap. However, the digital currency has long been a subject of concern in the crypto space. The firm claims every Tether coin is backed by one dollar. However, traders are now questioning the credibility of this claim.
Tether (USDT) Price Today – USDT / USD
Tether (USDT) is currently worth 99 cents after an increase of 0.6 percent over the past 24 hours. The current market cap of the digital currency is $2.05 billion and its trading volume over the past twenty-four hours is $2.34 billion.