Fixed-price tokens are here to stay, giving a semblance of liquidity to the markets, even when outside investment remains subdued. Tether (USDT) trading is habitually above 14%, and once again went above 16% of all market deals. The influence of USDT increased for Bitcoin to nearly 30%, but also keeps affecting the most prominent altcoins.
Coinciding with the increased USDT influence, the alternative asset-backed token TrueUSD (TUSD) has gradually increased its supply to more than 13 million tokens. The asset has moved beyond Bittrex, and into Upbit, where it trades against Bitcoin. TUSD saw an anomaly today - despite the fact that the team warned not to buy above $1.05, the token went as high as $1.10.
https://twitter.com/binance/status/996655533808435200
Perhaps the most supportive news for the new fixed-price token is the listing on Binance. Now, the crypto-only exchange has several options for trading against tokens. Beyond the Binance Coin (BNB), the exchange has the biggest Tether wallet, and will now see how TrueUSD trading evolves. Deposits for the coin are already open on Binance.
Unfortunately, the effect was unexpected - the asset continues to appreciate as of the writing of this piece, abandoning the link to the US dollar, as buyers flock in at higher prices. The anomalous prices spiked as far as $1.30, which puts a question on how much actual dollars are available for the new owners that bid high for TUSD.
https://twitter.com/TrustToken/status/996450146870349827
The TUSD team may also increase the token’s visibility by its Consensus 2018 presentation in New York.
There are no known mechanisms for setting the price to pegged positions, so the market may have to settle to the $1 level naturally. This would mean a loss of 30% for some bidders. The price for TUSD seems to have peaked at $1.30, and the overheating may be just a short-term event.
BitUSD, another dollar-linked token, also recently managed to regain its peg, after dropping sharply and hovering around 50 cents. Currently, BitUSD stands at $1.04, with trading volumes returning. BitShares, the asset used to prop up BitUSD, spiked to $0.36 while BitUSD attempted to regain its levels. Later, BitShares slid to $0.24.
This article appeared first on Cryptovest
