{"id":266955,"date":"2020-07-06T11:43:25","date_gmt":"2020-07-06T15:43:25","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=266955"},"modified":"2020-07-06T11:43:25","modified_gmt":"2020-07-06T15:43:25","slug":"another-crypto-crackdown-hits-china-amid-tethers-massive-popularity","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/another-crypto-crackdown-hits-china-amid-tethers-massive-popularity","title":{"rendered":"Another Crypto Crackdown Hits China Amid Tether\u2019s Massive Popularity"},"content":{"rendered":"
The Tether stablecoin<\/a> (USDT) has seen a very colorful career throughout its existence. This latest chapter has seen a massive inflow of capital to the network. Interestingly enough, this isn\u2019t a result of the crypto market<\/a> falling once more into chaos, but instead its traditional counterparts.<\/p>\n Investors are increasingly purchasing USDT to hedge their portfolios in countries where the \u201csafe haven\u201d currencies of the world, such as the conventional USD, are limited. This, in turn, has seen the stablecoin grow in market cap, increasing by 100% since the start of this chaotic year of 2020.<\/p>\n Interestingly enough, this massive influx of funds comes from none other than China. With the enormous influx of hedging of USDT, CCP has deemed it prudent to start a new wave of crypto crackdowns to try and keep its money within the country.<\/p>\n <\/a><\/p>\n According to a reporter focused on China<\/a>, the government has zeroed its crackdown in on OTC trading<\/a>, in particular. This reporter has stated that multiple government-linked companies and agencies have led the charge in their new push to put a stop to crypto trading.<\/p>\n It should be noted, however, that this report noted that the primary purpose of USDT within the country of China is to actually launder money, which isn\u2019t good in any way you look at it.<\/p>\n The USD is seen by most of the world to be the epitome of a secure currency, one that investors can hold on to when the world at large is hit by economic turbulence. A prime example of such economic turmoil would be, say, a pandemic that smashed into the world like a truck against a tree.<\/p>\n This stability is primarily attributed to the country\u2019s economy, particularly its strength and sheer size. Further stability can be gained through the power its central bank holds, keeping the currency at its peak level. All of these factors have left the USD relatively stable as the world at large\u2019s fiat currencies tumble amid the COVID-19<\/a> pandemic.<\/p>\n In response to this, many Chinese citizens have opted to turn to crypto-based solutions to try and hedge their portfolio, using stablecoins to do so. Tether, by virtue of popularity, has seen the largest influx of traffic as a result. With the massive popularity in China, Tether\u2019s market cap has skyrocketed to highs of $9.2 billion, having been only half that in January of 2020, at $4.6 billion.<\/p>\n","protected":false},"excerpt":{"rendered":"Big Problems With Bigger Implications<\/h2>\n
Renewing the Dragon\u2019s Ire<\/h2>\n
COVID-Induced Market Caps Soar<\/h2>\n