Figure 1: Tether Price Instability from September 2018 to January 1st 2019 (data from Coinmarketcap.com)
In spite of this recent negative publicity, as a proof-of-concept (POC), Tether has demonstrated an immense upside for a stable digital currency. Tether’s market cap increased almost 90% (Figure 2) while the top 15 cryptocurrencies (excluding stablecoins) decreased by almost the same amount. With the project’s regulatory issues and public distrust, there is an opportunity for second-movers in the stablecoin space to leverage new business models, technologies, and practices in order to leapfrog Tether and take away its market share.