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Tether FUD leads to strong jump in price for the biggest cryptocurrencies on Monday

The controversial cryptocurrency Tether fell 2.98 percent, down to $ 0.95 on Monday. At the same time, the three largest cryptocurrencies – measured in market value – are rising vigorously.

Cryptocurrency Pump

Bitcoin rose from $ 6300 to $ 6920 in one hour. After the pump, the price has stabilized on the $6600-6650 range. Ethereum climbed up from $ 195 to $ 220 ( now $ 210) while ripple has increased from 0.4 to 0.045 dollars.

Tether Fud

It has been investigated whether Tether Limited actually has enough reserves to match the number of tokens in circulation – as Tether claims it does, according to the news agency.

“There is concern about whether tether is really backed by dollars and rumors that USDT (tether) is abolished from various crypto exchanges,” wrote Charles Hayter, CEO of CryptoCompare, to CNBC in an email.

Tether is known in the industry as a “stablecoin,” a cryptocurrency to avoid volatility in cryptocurrencies such as bitcoin.

A significant turn in the price of tether should come as a surprise to investors as it is supposed to have a static exchange rate of one tether to one dollar, writes the news agency.

eToro Market Analyst Sceptical to Tether

“If there is a doubt that tether can maintain a stable value, investors on USDT will most likely move their funds to other cryptocurrencies,” said Mati Greenspan, a senior market analyst at eToro, to CNBC in an email.

Follow the development in the crypto market here.