CRYPTOCURRENCY
AltCoinTrader adds dollar-linked option to drive down SA bitcoin premium
Johannesburg cryptocurrency exchange AltCoinTrader has added a bitcoin product linked to the US dollar to its platform in a bid to attract foreign investors and drive down bitcoin’s premium in the local market. Owing to supply and demand dynamics, bitcoin tends to trade at a 6%-7% premium in SA, according to Richard de Sousa, partner at AltCoinTrader. By opening up the market to foreigners, the three-year-old exchange is banking on arbitrage trades to narrow the valuation gap over time. In July, AltCoinTrader added a new trading pair, bitcoin/ USDT. Tether’s USDT cryptocurrency, a so-called "stable-coin", is backed by US dollars. "The trading pair is quite important because it allows people to buy bitcoin without using rands," De Sousa said. The product was expected to eventually become "very sought after" as it opened the door to US and other investors. "They will level the price [of bitcoin] and make it more competitive. There are massive arbitrage opportunities. "It won’t happen ...
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