- Litecoin co-founder says Tether could shake up the cryptocurrency market
- The cryptocurrency executive claims that if Tether is dragged down it could impact the market
- Litecoin LTC price slips below the $45 mark following a period of high changes in price action
Litecoin news today – According to the latest Litecoin news, the Co-founder and director of the Litecoin Foundation Xinxi Wang has advised crypto users about the stablecoin Tether. The cryptocurrency executive shared his opinion on Twitter. He said the entire cryptocurrency market cap is now built on sands. According to him, his reference to sands represents the stablecoin Tether (USDT). According to Wang, if USDT is dragged down, the entire crypto market cap could crash along with it. As we all know, Tether can be exchanged to USD. Meanwhile, at press time the Litecoin price slipped below the $45 mark following a period of high changes in price action.
Litecoin LTC News Today – Wang: USDT is Can be Compared to Heroin
Wang said USDT is like Heroin. Just like there is no other way for Tether to stop minting. The US won’t let it increase forever and may pull it down which could potentially cause a cryptocurrency market cap crash. Tether is a dollar-backed token, meaning that over 2.2 billion USDT is equivalent to $2.2 billion. The token can be exchanged swapped for USD. Some of the crypto proponents believe that believing in the Tether coin is similar to believing in the USD. In the crypto space, the Tether stablecoin is valued like the USD is. Hence, minting more of the USDT could be unsafe if Tether does not hold the exact/corresponding amount of the USD in its coffers. Whether the USDT will crash anytime soon remains to be seen. However, there is some sense in Wang’s warning.
Litecoin Price Prediction – Litecoin Price is Down by 0.14% at Press Time
Going by Wang’s remarks, it is safe to assume that the valued USDT is like a time bomb on the digital currency market. Because the USD is pulled out the entire market will be shattered. Meanwhile, Wang’s network’s native coin LTC has entered the red zone. At the time of writing, the price of Litecoin was trading at the $44.72 area. The coin posted a loss of 0.14% over the past 24-hours. The performance of Litecoin’s price in the past 24 -hours hasn’t been stable, one trader known as David Smith believes that Litecoin’s technicals still look promising. According to his analysis, Litecoin’s price has created a double bottom before crossing the horizontal resistance position. However, the analyst still advises investors to tread with caution as the potential for a drop remains a possibility especially if the coin loses its horizontal support.