Tethers are Evolving: Moving to the Ethereum Network, and Building an Euro Asset

The USDT tokens have been slowed by the congestion of the Bitcoin network, and are moving to the Ethereum blockchain.

Tethers, or USDT tokens, are here to stay, and may continue to add a form of credit-based liquidity to other tokens besides Bitcoin. Recently, the USDT tokens have migrated to the Ethereum network, with two smart contracts for a USD-based asset, as well as an EURT token, based on the Euro. 

Tethers Keep Increasing Quietly in 2018

One of the reasons for the change is that the OMNI layer, the equivalent of smart contract layer on the Bitcoin blockchain, has been made too slow by the backlog of transactions. 

The new Ethereum-based tokens may be a part of the creation of Ethfinex, a specialized exchange for Ethereum-based tokens, where margin trading may be expected. With an injection of liquidity and margin trading, tokens may see much easier boost in price, but also expose buyers to greater risk of volatility. 

Two smart contracts on the Ethereum blockchain hold the new tokens, as yet with unknown effect on trading:

The USD-based token is also available: 

The ascent of Ethfinex and a lively marketplace for lesser-known Ethereum-based tokens may indeed turn 2018 into "the year of the altcoin". Until now, many post-ICO tokens barely saw trading, and made few moves on low liquidity. The presence of a dedicated exchange may change that, and create more opportunities for investors, but also more risk. 

A lot of those projects are now looking toward Ethfinex to make their token price more liquid. The community around those projects may also aid in landing the tokens on the up and coming exchange. 

For now, Status Network (SNT) and Golem (GNT) have been scheduled to trade on Bitfinex, with a potential move to Ethfinex and the possibility for margin trading. 

For some, Bitfinex itself is a problematic entity, which relies on a form of leverage to boost the Bitcoin price out of proportion. It is still early to say what the effect of the new tokens would be. For now, the "classical" USDT tokens have a supply just below 1.5 billion, while the Ethereum-based tokens for Ethfinex are just around 100,000 USDT and 14 million EURT. 

But USDT started slow as well, increasing its supply in leaps and bounds over the past six to eight months, so a similar fate may expect the two new Ethereum-based assets.