Traders in Asia continue to put their faith, and funds, in Tether

Despite Bitfinex and Tether’s ongoing lawsuit from the New York Attorney General's office, data shows Asia-based traders still have confidence in Tether. Over the counter sources also say the Tether stablecoin is preferred in Asia to others.

Use of Tether on exchanges has steadily increased in Asia from 2017's 4Q to present, with use in the U.S. steadily declining.

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Despite the fact that stablecoin offerings multiplied in 2018, Tether remains the pick of the lot for Asia-based traders, according to sources. Some traders say this is because experience with Tether is superior to other stablecoins, particularly when it comes to redeeming coins.

“People have tried to redeem even single-digit millions (tiny really) and Gemini has failed to allow those redemptions,” one person said. “Whereas even with these events, Tether [redemptions] are working fine.”

The NYAG first brought the case in April, alleging Bitfinex co-mingled funds and borrowed from Tether to cover up losses. Sources say traders in Asia are relatively unperturbed by the case.

About Author

Aislinn Keely is a reporter on The Block's policy team holding down the legal beat. She covers court decisions, bankruptcies, regulatory actions and other key moments in the legal sphere, putting them in context for the wider crypto industry. Before The Block, she lent her voice to the NPR affiliate WFUV and helmed Fordham University's student newspaper. Send tips or thoughts on all things policy and legal to [email protected] or follow her on Twitter for updates @AislinnKeely.