Traders In China Buy Hundreds Of Thousands Of USDT Above Market Price
Recently, the investors from China have been actively buying the Tether (USDT) stablecoins at a price that is almost 5% higher than the nominal value. Such a trend was reported by a Twitter user under the nickname cnLedger, who reviews blockchain and crypto industry in China.
The source found a surge in activity on over-the-counter platforms, where Chinese traders bought USDT at 7 yuan ($1.04), while the official stablecoin exchange rate was 6.7 yuan ($1). Besides, cnLedger attached screenshots from the OTC platforms of Huobi and OKEx, which show that the volume of some transactions exceeds 100,000 USDT.
Due to the ban of ICO and crypto exchanges, adopted by Chinese regulators in 2017, over-the-counter trading remains practically the only way for local traders to acquire bitcoin and other digital assets. That is why investors agree to overpay for the opportunity to buy USDT, cnLedger suggests.
In addition, it is more convenient for local residents to first buy stablecoins like Tether on over-the-counter platforms and then exchange them for other cryptocurrencies, the columnist notes.
USDT has long been strengthened in the top ten of the CoinMarketCap rating with a capitalization of more than $2 billion. As of 12:00 (UTC+3) on Monday, April 8, the total trading volume on stock exchanges with the stablecoin exceeded $18 billion.
At the beginning of the month, 38,150 transactions were made on Tether, which was an absolute record over the entire existence of the network.
Tether is one of the very first stablecoins, launched in March 2015. No other stablecoin is in the top 20 assets by capitalization in the CoinMarketCap rating. Alternative USD Coin and the TrueUSD token occupy the 30th and 40th places, respectively.