USDT Archives - 2100NEWS

Luka GlogoskiMarch 29, 2018

3min953

Tether continues top stir up controversy as it cancels its audit and issues $300 million more worth of tethers.


 

The thing with Tether is that it’s supposed to be backed up by US dollars in a one-to-one ratio. But no one has actually been able to confirm that those dollars in fact exist in their bank account since there has never been a successful external audit completed.

Additionally timing of Tether issuance has had a suspicious effect on Bitcoin’s price. It always seemed to coincide with Bitcoin’s price increase, usually at times when Bitcoin was falling in value, leading some to suspect marker manipulation.

Funny enough this has happened again last week as the price of Bitcoin rebounded by 6% shortly following the issuance of $300 million worth of Tether tokens.

Anonymous blogger Bitfinex’ed, who is no fan of Tether – or associated exchange Bitfinex –  to put it mildly, posted on Twitter at the time that the release of such a large amount of Tether once again caused an increase in Bitcoin’s price.

https://twitter.com/Bitfinexed/status/976179019191410688

Pantera Capital chief investment officer Joey Krug expressed concerns back in January 2018, that these rallies had led to Bitcoin’s price rise to an all-time high of $20,000 in December of 2017.

“This became more and more concerning, because every time the markets went down, you have seen the same thing happen. It could mean that a lot of the rally over December and January might not have been real.”

Even the creator of Litecoin, Mr SatoshiLite himself, expressed concerns around the matter all the way back at the end of November 2017.

Still No Audit

Despite all this criticism and many promises, Tether have still not completed an external audit of their accounts, which would easily dispel their critics’ claims of financial impropriety.

The reasons given by Tether for not completing their audits have been shaky to say the least. Since 15th September of 2017, when their accounts were last checked and confirmed to match the issued tokens at $442 million, there has been no further confirmation of their fiat reserves.

In theory Bitfinex exchange who issue Tether, make enough profit through trading and lending fees, to have enough cash reserves to cover the issued Tether tokens, however until we see a full independent audit completed, doubt will remain. And doubt is the last thing we need in these volatile crypto markets, so hopefully Tether will provide a full and transparent audit soon.



About us

We are the new economy news hub. 2100NEWS is the professional index, data, and tools provider in the digital asset space, offering Crypto Market Intelligence, providing the perspective you can trust and equipping you with information edge you need to stay ahead. (Real-time data of token issuers and news, analysis and commentary from community.) We are very excited to contribute to the evolution of the industry and build an ecosystem around our offering (the institutional-grade data infrastructure required to enable institutional investments in digital assets). We want our contributions (Contents and Tools on 2100NEWS.com) to be useful for helping investors.


CONTACT US

CALL US ANYTIME



Latest posts



Newsletter


  • ethereumEthereum (ETH) $ 388.85 4.49%
  • rippleXRP (XRP) $ 0.246888 2.19%
  • litecoinLitecoin (LTC) $ 56.31 4.6%