As Bitfinex and Tether faced a lawsuit with charges of price manipulation, Tether and indeed the entire cryptocurrency market went on a downward trend that affected prices for a number of days. As the market recovered, Tether has also recovered with an increasing price that presented an opportunity to trade on Kraken for some quick profits. According to Diar, trading opportunity increased by 5% on Kraken during the comeback.
The Tether Fiasco
Towards the end of April, the attorney general of New York filed a case against Tether and Bitfinex Exchange which is operated by Tether owners. The suit alleged that Bitfinex used USDT to the tune of $850 million to cover up fund loss on the exchange. This did not only affect Bitfinex and Tether but the entire cryptocurrency market. on the 26 April, CoinDesk reported that USDT pegged the price of $1 fell to $0.955. In fact, the crypto market lost $10 billion in one day due to the lawsuit.
Kraken presents opportunities
Tether has since recovered to its pegged price of $1 as the market also recovered with Bitcoin pushing to break through $6,000. During the recovery process which took over 10 days, the market presented a rare trading opportunity on Kraken which has a much larger trading volume of over $170 million than OKCoin which has just about $5 million, as these are the only exchanges that support USDT/BTC trading pair.
The Kraken opportunity did not last though and may be officially over as USDT is back to its pegged price of $1. The unique trading opportunity with USDT was due to other major stablecoins being in the green even as other cryptocurrencies crashed alongside Tether as reported by CoinDesk. Those major stablecoins are however in the reds at press time. A switch from Bitfinex to Kraken showed a consistently increasing profit from $58 on 25 April to $268 on 5 May as reported by Diar in its latest volume yesterday 6 May.