March 22, 2018, 4:19 p.m. Tags: blog
When it comes to the issue of a major market crash it’s best to use available information to attempt to determine a precise cause. The markets could be moving beyond normal market cycles and corrections as a result of mere volatility as we have observed them correcting downwards over the past month.
Tether, one of the largest safe-havens for crypto profits (due to its supposedly stable value), was recently subpoenaed by the US courts. In this light it may be worth considering the long term implications of any subversive or otherwise dishonest actions made by Tether and its associates. The issue is not only how much their printing press could have distorted prices, but also how much confidence that false safety net may have created.
Markets will likely be hindered until a more provably secure safety net arises - which is conveniently already here in the form of the Ardor AEUR childchain token. This token seeks to peg its price at a 1:1 ratio with the Euro while also being fully transparent and third-party-managed by a trusted company: the Lithuanian-based Mistertango Bank. While not a proof of a perfect 1:1 ratio for all AEUR tokens, this partnership will likely instill confidence to a crypto market hungry for stable pegs. Rest assured this development will inspire more projects to build upon this emerging demand.