Why Is Tether Controversial

Tether what is it

Why Is Tether Controversial

Tether is a stable coin that is used on many exchanges. That means that Tether is valued to fiat (USD) at the moment it is issued, which is only once per day. The number of USD in Tether coins is not known but is estimated to be around $2.8 billion. When the Tether currency was created in 2014, it had an initial production cap of $3 billion, and it was meant to be backed by fiat-based USD deposits in a consortium of banks. However, there is currently no record of Tether having a bank backing it and therefore it is hard to say what is going on with Tether’s value. What is the Currency’s Value It is not hard to understand why Tether coin is so valued. On some exchanges (which are regulated), Tether is the only stable coin.

How Does Tether Work?

Many believe it’s because this is the sole reason behind the stock plummeting. Tether claims to be backed up by 100% of U.S. Dollars held in a virtual account. Supposedly, this allows users to convert into an ETF or to buy Bitcoin, without fear of losing their funds. However, while there are many that use Tether, many cryptocurrency exchanges do not. This has caused people to question what makes up this coin. A Trigger People are concerned about it because many were using it to purchase Bitcoins. They feared that they would not have the funds when they are needed. I also believe that this is one of the reasons we’ve seen so many selling. I noticed that BitFinex started listing Tether like a day after they found out about the SEC investigation.

Why Do People Worry About Tether?

Tether is a stable coin that is used on many exchanges. Tether is similar to Bitcoin, but what makes it special is the fact that you can exchange Tether for other cryptocurrencies without the exchange fees. This is because it is backed by US Dollars held at a reserve that is guaranteed by the Tether Limited. The entire operation of Tether Limited is audited every quarter. The company is managed by Austin Hill, a native of New Zealand. Advertisement While the issuance of Tether has not been accounted, there are several reports that the company’s reserve has been depleted significantly in the past three years. The reserve stands at $2.3 billion right now, whereas the total number of Tether circulating worldwide has increased significantly in the last four years, according to CryptoCompare.

What Is Happening to Tether Right Now?

While Tethers have been out for a few years, recent activity has pushed their price down dramatically. The Tether Twitter account wrote this on Monday, Tether USDT is USD. There is no other “USD” in the universe. Tethers are not backed by U.S. Dollar and are not redeemable for any fiat currency. As of this writing, USDT had dropped from $1.25 USD to just 40 cents. Here’s the latest activity with Tethers on Kraken, one of the largest exchanges: The Kraken site shows $1.096 Billion in trades during the past 24 hours. Of those trades, $2.8 Billion (43%) are not backed by Tether. Those are huge sums of money that have disappeared over the past 24 hours. What Did Tether Done? Tethers are Tethers backed by USD. That means, if Tethers were to default, they could default in USD.

Conclusion

Tether and Bitfinex’ and USDT, what is the connection? In short, there is no connection. If there were, and there was some sort of collusion between Tether and Bitfinex, it would imply that Tether is essentially a scam, and that Bitfinex is colluding with Tether to defraud investors. There is absolutely no evidence to suggest that Bitfinex or Tether are colluding with one another, and this should be common knowledge by now, after the investigation they conducted. Bitfinex says they haven’t been in contact with Tether in over two years, and that they were contacted by Tether to investigate their issuance in March. If Bitfinex isn’t in touch with Tether, that doesn’t mean they’ve colluded with Tether, that just means they didn’t respond.