TRON has recently announced the launch of USD-pegged stablecoin USDT (Tether) on its own blockchain network.
Tether moved from OMNI protocol-based USDT to TRON allowing users to gain access to a fast track network and TRON’s smart contract infrastructure. At the same time, the choice for TRON enabled a high degree of interoperability between TRON’s consensus mechanism and decentralized applications permitting users to operate stablecoin transactions in TRON blockchain network.
It is quite obvious that TRON is more than happy to hold Tether on its blockchain as the company plans to reward holders of TRC20 based USDT with 20 million USDT over the next 100 days. Popular crypto exchanges Huobi and OKEx will offer support for the new TRON-based USDT promotion that will take place from April 30 to August 7 2019.
But why is TRON interested in offering a TRON-based Tether (USDT)?
The partnership between TRON and Tether was announced some time ago as the two companies were interested in creating a better environment for institutional investors looking to access the crypto market with a viable solution.
But the main question should be: what type of investors are we talking about? Though at the moment there isn’t any official comment from TRON, we have to step back and see the full picture.
In the last weeks it has become increasingly clear for crypto analysts and media that Chinese investors are coming back into the blockchain space and they are ready to spend like never before in anticipation of the following bull market.
But we all know that Chinese citizens have some obstacles that block them from spending the national currency in excess, especially for purchasing cryptocurrencies or getting involved in ICOs.
However, Chinese investors do have the possibility to access the crypto market by first purchasing Tether and then using USDT to acquire Bitcoin and any other digital currency.
These facts were exposed recently indicating that Chinese investors are decided to take the market prices to new all-time highs via TRON-based Tether as the entrance gate into crypto.
The following months should offer more clues on how exactly the crypto-market evolution is influenced by the new TRON-based stablecoin Tether.