Tether Warning ......
Tether and Bitfinex have been controversial. Is it true? It's a rumor? Find out by analyzing this mystery.
Before digging too deep into the surrounding Tether FUD (USDT), you must have a basic understanding of what this cryptocurrence is.
Founded in 2015, Tether was created to be a stable and connected piece to the online Bitfinex stock exchange, one of the largest stock exchanges in the world. Tether is intended to reflect the value of the US dollar, which allows you to convert or attach the US dollar to digital currency.
"Each Tether is always supported 1 against 1, by the traditional currency kept in our reserves. So 1 USDT always equals 1 USD. »Tether Website»
If you're connected to the cryptocurrence markets, you've seen news reports from Tether and Bitfinex receiving subpoenas from US regulators. As soon as the news of the subpoenas was announced, the cryptography market saw a fall in prices. Which brings us to many questions. What are the facts, why is there FUD around Tether, and is Tether actually a "time bomb"?
Facts.
Fact: Subpoenas were in fact issued to Bitfinex and Tether on 6 December.
Fact: Critics argue that there should not be such a close relationship between Tether and the owners of the Bitfinex exchange.
Fact: Rumors have been circulating for several months that it is possible that Tether Ltd. may have does not have enough US dollars to support the cryptocurrence sold.
Rumors.
Rumor These unprecedented highs have led many to believe that price manipulation has continued.
Rumor: In April, Tether Ltd. revealed that their banking relationships in Taiwan had been broken, resulting in the suspension of deposits and withdrawals for retail customers.
Rumor: April also brought a massive expansion of the number of Tether on the market despite the fact that they proclaimed the inability to accept deposits from a non-Taiwanese bank account.
Rumor: In September, Tether Limited denied that they were underfunded and promised a historical audit which, at the time of writing, was still incomplete.
Rumor: In December it was announced that the existing Tether platform would be phased out and no further deposits on current portfolios should be attempted.
The tick of the bomb.
This brings up the question: is Tether a ticking time bomb?
To answer this question, we must ask ourselves if Tether, in fact, has created millions of dollars of the Tether currency to buy Bitcoin currencies and other cryptocurrencies as the markets reported falling prices for these coins? There is reason to believe that this actually happened because there is data from Bitfinex activity analyzes showing that significant purchases of bitcoin and other tokens occurred during this period.
In addition, there is the fact that after the market has shown huge gains in the months leading up to the end of 2017, Tether is "hacked" and loses 31 million tether. Tether calls skepticism "uninformed and unfounded".
Then, in January of this year, the market drops sharply and Tether separates from its auditors, Friedman LLP. According to Tether, Friedman's audit would be unrealistic within a reasonable time. today, one wonders if another audit firm has not been hired or not.
Although it is still too early to say where we are going, one thing is certain, there is a definite reason for the FUD, because the ramifications of these events will have lasting effects.