Poloniex Adds Five New Cryptos to Trade Against Tether (USDT)
Poloniex, an important exchange in the crypto industry, will be introducing new USDT trading pairs. The addition of Tether pairs is one of the first major changes implemented by Circle since the firm acquired the exchange.
The exchange will now allow the trading of Tether against 0x (ZRX), Lisk (LSK), Dogecoin (DOGE), Golem (GNT), and Siacoin (SC). Dogecoin recently saw an increase in price which surprised most of the community. Most of the trading volume comes from trading pairs associated with the USDT coin.
This activity occurred on other platforms, which probably piqued Circle’s sudden interest in the coin. This new exploration of market opportunities may bring more exposure to the Poloniex platform.
Stablecoins can represent an ideal substitute for fiat currency trading. Tether’s value is backed by the US dollar all the time. This can facilitate the acquisition of any of the cryptocurrencies that can be traded against USDT. But altcoins represent a small market segment, as most Tether trades are with Bitcoin or Ethereum.
Tether’s reputation is very controversial, as it has been accused of being used to influence Bitcoin’s price. But it appears that the stablecoin has started being used to induce an increase in the altcoin market via trading. Seeing as the listed cryptos by Poloniex have a low market cap, it cannot be that difficult to induce a noticeable increase.
Even if these five currencies go up in price, that doesn’t confirm that Tether manipulated their values. Most probably the new USDT additions will generate a wave of interest in the first weeks. However, after the hype goes down, the cryptos will have to figure out how to avoid a major price dip.
Tether’s involvement in the altcoin markets can prove to be beneficial for the coin and its reputation. As Poloniex is a reputable exchange and its newest addition to the stablecoin’s pairs will confer more creditability to its status.