Tether network registered highest number of transactions on record
|- Tether had the highest number of transactions.
- Market participants are not happy with Tether policy updates.
On March 31, the Tether network registered 38,150 transactions which is an all-time high. Meanwhile, Tether Limited, the company behind the token, renewed the token’s collateral policy.
Now the coins are secured by reserves that consist of traditional currency, cash and cash equivalents and, from time to time, other assets and receivables.
The representatives of the company tried to assure the community that USDT is still backed by US dollar 1:1, but investors remain skeptical.
Also, the new policy resembles the policy of partial backup, which means that tokens are secured by the existing cash and borrowers obligations payable to the issuer.
If that’s how the new Tether model works, then the company adopted the procedure of banks and financial institutions, that led to financial collapses more than once. Though, if traditional financial companies may be bailed out by governments in case of emergency, Tether is hardly eligible for such kind of state support.
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