The stability of the certification is afraid of being regulated, will Tether give up the USDT?

Interpretation today

According to Crypto Briefing, Tether CTO said that Tether is working on a new algorithm for stability certification, tentatively named USDTX, which will operate in a DAI-like manner.

The operating mechanism of the stable certificate mainly includes three modes: the legal currency mortgage model, the digital asset mortgage model and the unsecured algorithm stabilization. The stable pass DAI is based on the CDP smart contract (automatic mortgage debt warehouse) mortgage system. The user “creates” the stable pass DAI according to a certain proportion through mortgage ETH, which is the model of digital asset mortgage. At present, we do not know the specific details of USDTX, but we suspect that it will be a digital asset mortgage stability certificate based on smart contracts, not pure algorithm stability.

On the Maker platform, anyone can exchange ETH assets for DAI through collateral, while DAI's initial price is set to be 1:1 ratio with the US dollar, that is, users can use cryptocurrency assets in Maker's system. Mortgage converts cryptocurrency assets into DAIs that can be redeemed with the US dollar. The DAI obtained through mortgage can be used as a daily payment means, a value storage, a transaction medium function, or exchange between the exchange and other mainstream digital certificates.

According to Ardoino, “Algorithm stable coins can work well when they are reasonably sized, but if they are forced to liquidate large amounts of debt in a catastrophic event, they have the risk of crushing the market and price collapse. Tether's algorithm is stable. The certificate must be able to scale to the same multi-billion dollar size as the current USDT, but it must also be able to perform large-scale liquidation in a timely manner without significant disruption to the market."

He also stressed that USDTX will not replace the current USDT. Instead, Tether hopes that the two will complement each other.

On the one hand, Tether is facing litigation, and on the other hand, the law enforcement of the legal currency mortgage is also facing regulatory pressure.

According to official FATF news, the Financial Action Task Force (FATF) of the Anti-Money Laundering Group recently used the thematic form in the “Plenary Report” to prove stability as a “global risk” in money laundering. The FATF “Plenary Report” is a document that the main members of the FATF show their priorities. The current FATF chairmanship is China. If the FATF defines a new type of payment instrument as “significant risk”, then the “risk-based risk control guidelines” tailored to the tool will appear in the next year.

The development of USDTX, and may gradually shift from USDT to the new stable certification in the future, is an initiative of Tether to transfer regulatory risks, and the stability of the CSI market may be subject to more regulatory impact in the future.

Market research

Overall view

After falling below 8,000 US dollars, BTC consolidated at a low level. In the past three weeks, BTC has broken below the 8000 US dollar mark several times and repeatedly hit the support level of 7,700 US dollars. At present, BTC has not seen the trend of heavy volume falling below the support level. We believe that the 7700 support is still valid. The recent trend is mainly based on shock or small rebound. The recent sharp decline in the main circulation certificate provides investors with a more suitable price, and long-term holders can buy on dips.

In December 2018, we clearly pointed out BNB's investment opportunities in the bear market, and the first to propose that the BNB in ​​the bull market will enjoy Davis double-click (hedging: the platform pass the bear market profit key – the certificate valuation series) 2) In October 2018, we will point out the price cycle of BTC and predict the bottoming time to be around May 2019 ([Classic update reappears] three laws and applications of BTC Bulls and Bears cycle – Freezing Point Outlook A); In April 2018, when the remaining temperature of the bull market had not been exhausted, we indicated that it was a rebound rather than a bull market (whether the bull market is coming? It is the four reasons for the rebound rather than the bull market).

The recent trend of BTC is mainly due to sideways volatility. In the near future, it may continue to approach the support level and the previous low of $7,700. BTC support level 7750USDT, pressure level 8300USDT.

The main circulation certificate has a weaker trend in the near future. The ETH linkage shock consolidation, support level 165USDT, pressure level 190USDT.

The EOS rebound came to an end. The support level is 2.70 USDT and the pressure level is 3.10 USDT.

risk warning

The price of digital pass is fluctuating violently. Investment digital pass is a high-risk investment behavior. Investors should reasonably assess their investment ability and risk tolerance, use leverage carefully, strictly control risks, and invest carefully. Investors are advised to keep in mind that investments are risky and require caution when entering the market.


Personal opinions are for reference only. The analysis in the text does not constitute a recommendation for trading, and the profit and loss is self-sufficient. Welcome to reprint, but need to indicate the source.

Source: Coins