- (0:30) - Cryptocurrency Sell-Off
- (4:00) - Tether Grabs Attention On Crypto Pullback
- (8:00) - Is Tether A Fraud?
- (11:10) - Takeaways on Cryptocurrency: Podcast@Zacks.com
On today’s episode of the Tech Talk Tuesday podcast, Ryan McQueeney discusses the recent sell-off in cryptocurrencies and highlights a new report that suggests one popular altcoin could be propping up the price of bitcoin under false pretenses.
Remember to subscribe and leave a rating on Apple (NASDAQ:AAPL) Podcasts if you enjoy the show!
Bitcoin had shed more than 60% of its value since surging to an all-time high of around $20,000 at the beginning of the year. That kind of sell-off obviously cannot be blamed on any on factor. We know that fears of increased regulation in several key Asian markets—including China and South Korea—probably scared some investors. We can also assume that many long-time holders decided $20k was a great place to cash out their massive profits.
But Ryan talks us through another contributing phenomenon that has to do with an altcoin called Tether, a so-called “stablecoin” that attempts to maintain a value of one USD. Tether tokens are issued by a Hong Kong-based company that supposedly backs each new unit with a fresh dollar in its reserves.
A new report finding its way through the cryptocurrency space suggests that Tether is responsible for nearly 40% of bitcoin’s price, thanks in large part to its usefulness in easing transactions. But that same report also claims that it is highly unlikely that Tether is growing organically, which casts doubt on its value.
Ryan talks listeners through this new report and highlights some of its implications. Make sure to check out the show to hear these figures!
As a reminder, if you feel that we missed something, or if you want us to cover a different story, shoot us an email at podcast@zacks.com. Make sure to check out all of our other audio content at zacks.com/podcasts, and remember to subscribe and leave us a rating on Apple Podcasts.
As always, thanks for listening to the Zacks Tech Talk Tuesday Podcast; we will see you next time!
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