Other Issues of Why Tether is a Precarious Dollar Peg

BitCrypto’ed thinks there are other issues why Tether is a precarious dollar peg. There is no liquidity, the author says. There is only one legitimate exchange the has a btc-tether pair besides Bitfinex, and that is Kraken.

Allegedly, there is also no limit to the supply of tether. The company can mint or create as many of them as needed. Nothing checks supply and demand of the asset. Furthermore, Tether says they are professionally audited, but BitCrypto’ed says there is no evidence of that claim. In a Medium article, the author also claims that Tethers have been used as fraudulent monetary instruments for margin trading on Bitfinex.

Since Tether also tends to move off of the dollar mark on exchanges, it could imply that people use Tether to hide in during times of uncertainty in the cryptocurrency ecosystem. This would explain why Tether’s price increases slightly when bitcoin and other cryptocurrencies are falling. However, the veracity of some of this information also depends on future developments and how Tether and Bitfinex deal with ongoing issues. The rest remains to be seen. Until then, BitCrypto’ed believes Tether is a precarious dollar peg and possibly used for fraudulent activities.