Chinese Citizens Are Buying Tons of This One Crypto
Cryptocurrency may be banned in China, but that has not stopped the residents there from buying and selling the tokens on the black market. One particular crypto coin is doing very well there.
Analysts are detecting massive inflows for the country for Tether (USDT). This stablecoin is connected to the US dollar and is intended to sell at almost exactly the price of $1USD. The coin has been selling at a slight discount, however, since last month.
That has created an opportunity for savvy investors to buy up large amounts of the crypto token and then resell it. According to the data for crypto transactions, a lot of the increase in USDT transactions lately have been coming from China.
Chinese investors are creating significant demand for the digital asset, and there does not seem to be much regard for the current ban the government has on crypto mining and transactions. Crypto trading has been banned in the country since 2021. However, many Chinese are using international exchange platforms to buy crypto and then send it to bank accounts they hold in other countries.
The Chinese Situation
Recently stock prices in China have skyrocketed after the central bank tried to ease economic pressure. This caused the Tether value to dip and sell below the value of the US dollar. This is likely just a temporary situation, but the citizens are likely to keep taking advantage of it for now.
While stablecoins usually see little change in value, occasionally economic events and market fluctuations will cause value changes for short periods of time. There is currently a rush on fiat currency that is coinciding with a massive upswing in Chinese stock purchases.
The economic situation in China is likely to stay unstable for the near future, which can make the country a buyer’s market and produce extensive speculation.
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