Unfortunately we have all seen massive amounts of money just wiped off of the crypto world in the last month.

It all started with reports of the crypto Tether a crypto token that’s supposed to be pegged to the dollar and backed by real dollar reserves in a bank account somewhere.

Lets take a deep dive into this and see what is going on and why markets are taking since news of Tether hit the headlines.

What is Tether

Tether was created to be a way to easily transact coins without the high fees and wait times. Tether coin/token should be a even 1:1 where one coin or token is equal to $1 USD in a bank account somewhere.

As Tethers grow so does the money backing it in the bank need to grow equally.

Audits

Audits where said they would be done monthly and be aggressive allowing for true transparency about what is going on within the system.

Buying and Selling

Massive amounts of Tether are currently both being bought and sold like clockwork at the moment as speculation and those believing the company is still stable.

Speculations and Truths Mixed In One

• Bitfinex was hacked back in August 2016 in the amount of 120,000 bitcoin (YES 120k!) The owner which is closely tied to Tether.

• The company then decided to confiscated 36% of each deposit from customers and issue a big IOU to them in the form of a BFX token.

• April 3rd Bitfinex announces it was able to repay the 100 percent of the remaining BFX tokens.

• At this point the promised audit still did not take place and instead came back as Ledger Labs does NOT do audits.

• Friedman LLP was then picked to complete a comprehensive balance sheet audit in May

• Friedman LLP audit drags out 2017 and into 2018 In which Friedman dropped Bitfinex and Tether as a customer and quietly and without explanation.

• The reason for this backing out is pure speculation right now but often times a financial company is bound by confidentiality so if they find something wrong they can back out but not say anything about it publicly.

• 18 Months later the promise of those aggressive audits not a SINGLE audit has been fully performed and released.

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I broke down the above in short chunks to try and make sense of all this madness but the biggest speculation of all and what almost everyone fears about tether is simply they have been producing more and more without the dollar value to back it up. That 1:1 peg trade could very well be 1:10, 1:100 or worse! But without records and auditing of the company we are still unable to tell. This of course would GREATLY inflate the bitcoin community prices along with every other alt coin.

Time will tell I guess but so far our price point seems to be $4,500 for bitcoin until things clear up from this company. A real shame when you start to dig into the shady stuff that goes on by these centralized exchanges.