Tether acts as a cornerstone in the crypto market, and in case Tether is not fully backed, the market will be severely hard hit since. Moreover, market participants will then be nervous that Tether has artificially pumped crypto prices by trading them against a stablecoin which is not fully backed. Tether’s CTO went to Twitter last week saying that: “Tether portfolio is stronger than ever”.
While Tether’s supply has greatly decreased in the past months, the supply of the second largest stablecoin USDC has increased from around $48bn to $55.8bn. USDC is known to be much more transparent concerning its reserve backing its stablecoin. However, particularly traders still favor Tether, because trading pairs quoted in Tether are often much more liquid compared to similar USDC trading pairs.
Premier League’s love affair with crypto
According to The Athletic, 19 out of 20 Premier League clubs have at least one sponsorship deal with crypto-related companies, such as cryptocurrencies and exchanges. The crypto industry has for the past years emerged from the shadows, particularly sponsoring various sports. Simply, you cannot watch an F1 race or a Premier League match without seeing the names of multiple crypto companies. For the near term, this will certainly be less frequent, as many crypto companies are cutting costs, for instance, Coinbase and Crypto.com have recently fired employees. In terms of Premier League (and arguably the crypto market in general), as the saying goes, easy come, easy go.