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Tether [USDT] to let the crypto world down? – Controversial token in the market

Vinod KA

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Tether [USDT] to let the crypto world down? - Controversial token in the market.
Source: Pixabay

Tether [USDT], which is currently ranked at number 14, has a price which is in a 1:1 ratio with the USD. This is the peculiarity of this coin and has been more or less the same since March 2015. However, Tether has been constantly pestered with banking issues. Tether had also faced an attack on November 19, 2017, which removed $30,950,010 USDT from the Tether Treasury wallet which was sent to an unauthorized Bitcoin address.

Controversies revolving around Tether continues as they issued $300 million tokens, priced at $1, on 20th of March this year. Previously Tether had released 86 million in euro-backed EURT and 61.1 million in US dollar-based USDT on Ethereum’s technology. This resulted in a price hike for Bitcoin and it crossed the $9000 mark on the same day.

The accusation against Tether for the past 6 months has been that the blockchain does not have enough fiat reserves to back the tokens that they issue from time to time. Tether had previously assured that it is routinely audited and announced a transparency update on their website on 15th of September 2017.

They had also assured that they have sufficient reserves to back all of their tokens with U.S dollars. However, no such official audit has been done till now.

This issue was taken up by the Commodity Futures Trading Commission [CFTC] in December 2017 when they issued a subpoena. After which Tether reassigned Friedmann LLP to conduct an audit of its US dollar reserves. But a month later, they broke away from their auditors. Thus no official audit has ever been disclosed by Tether and it remains unfinished.

As per the memorandum attached to the announcement made in September, Tether had $442.9 million reserve in its bank accounts and about 422 million tokens were issued. These details seem to be fair enough but the reports say that Tether was not fully satisfied with the timeframe it was given.



A Twitterati commented:

“Some FUD is legit FUD. This issue is a legit threat. If Tether is a scam, there will be a massive collapse from current levels.”

Another Tweep says:

“I guess this had a relation with Bitfinex move to Switzerland … I think they are looking for more stable banking system to defend them if Tether collapses”





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Vinod KA is an intern at AMBCrypto who has been analyzing the cryptocurrency market trends for several months now. He joined the company out of sheer interest in the cryptocurrency world and is fascinated by its dominance in the financial world. He does not hold value in any cryptocurrencies as of now.

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Tether’s [USDT] market capitalization hits all-time high, Facebook in talks with Winklevoss twins, trading firms over new cryptocurrency and more

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Tether’s [USDT] market capitalization hits all-time high, Facebook in talks with Winklevoss twins, trading firms over new cryptocurrency and more

Daily Crypto News – May 25

1) Bitcoin Wallet receives part of 5,000 BTC: A recent Whale Alert highlighted a transaction on May 24, where a large sum of Bitcoin [BTC] exchanged hands between two anonymous wallets. According to the alert the transaction took place at 22:13:23 + 1 minutes and 5,000.00001092 BTC was transferred from an unknown wallet, with address 19SiCYaYKZh9A8HUjuh14eg5wtYzKxiFbB, to another unknown wallet with address 14GcjGjxwadzcpmq9EG3KUgTKATjurbnWt.

Read more at https://bit.ly/2VRQwb0

2) Bitwise Report 2.0: Bitcoin [BTC] futures continues growth: On a month-on-month basis, Bitcoin Futures saw a massive bump in April trading at an average of 10,000 contracts daily, peaking on April 4, with over 22,000 contracts traded. To put that number in perspective, in March 2019, the average contracts traded was less than 4,000. Despite the high standards set in April, the average daily contracts traded in May, with 25 days gone has exceeded 14,000 and still looks to grow, given the price performance of Bitcoin.

Read more at https://bit.ly/2W40sTR

3) Craig Wright on private keys: Craig S Wright has, for years, claimed he is the true creator of Bitcoin [BTC] without providing a shred of evidence to support the same. With the crypto-community levelling, Wright could prove his worth by sending BTC from Satoshi Nakamoto’s touted wallet containing around 980,000 BTCs, the BSV man in a twisted cause and effect situation, stated he will “sign” into his wallet only when he proves he is the creator.

Read more at https://bit.ly/2X6fdlw

4) Tether’s [USDT] market cap hits ATH: Tether and Bitfinex are being closely scrutinized now more than ever due to the NYAG’s lawsuit; however, the scrutiny doesn’t seem to have affected Tether as the market cap of USDT has increased by over $100 million in approximately 70 days.

Read more at https://bit.ly/2McaTjE

5) Tether volume shift: Another controversial topic in the cryptocurrency industry was the issue of fake transaction volumes on many of the popular cryptocurrency exchanges. The magnitude of the topic was so large that even Changpeng Zhao, the Chief Executive Officer [CEO] of Binance had raised red flags. This topic and Tether as a whole received another twist when Larry Cermack, the Director of Research at The Block, pointed out a few parameters when it came to the said volume.

Read more at https://bit.ly/2wmk4mJ

6) Bitfinex’s LEO tokens listed on Delta Exchange: Bitfinex’s Leo tokens faced quite a lot of criticism when they were announced, due to the missing $850 million funds from Bitfinex. The private investment round by Bitfinex also faced a lot of heat from the media. However, in a recent development, Leo tokens are being listed on various exchanges for trading.

Read more at https://bit.ly/2HUEnNB



7) Robinhood en-route a projected valuation of $7 billion: Robinhood, the California-based cryptocurrency exchange made headlines recently when a source close to the organization revealed that it was on the verge of closing their latest round of funding at a valuation of a whopping $7 billion – $8 billion. Sources even claimed that the current round of funding could act as a precursor to an even bigger round of funding, which would pit Robinhood with the bigwigs like Coinbase and Binance.

Read more at https://bit.ly/2W64KKj





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