Tether, a cryptocurrency made up by the guys from Bitfinex is finally now under fire. According to coindesk, both Bitfinex and Tether is now being notified subpoenas by the CFTC.
The initial first reaction might be, oh man it is uncle Sam mingling with the cryptocurrency market again. However, If we take a step back and look at the issue deeper the question of whether Tether have every single "dollar" that it is supposedly pegged to arises. Looking at how they respond to their firing of their auditing company "citing" that they are too slow and never posting their holdings of the US dollars seems very questionable. Now, the US government is in the mix to examine exactly what's going on here.
If Tether does not indeed have the US dollar pegged to each Tether available, this would be what you call printing "money" out of thin air!
Now compare that to a person printing fake money in the streets, what's the difference between the two? Crazy right? yes not much! What's crazier is that the people printing the money is most likely buying Bitcoin or cryptocurrencies you and I are buying as well.
Not good, not good at all! And if it turns out bad as a result from the investigation for Tether, those of us that hold any Tether would be in big trouble. People might cry FUD, but subpoenas are as real as it gets guys. If you hold any Tether, my recommendation is to convert it to Bitcoin or top cryptocurrency assets as fast as you can!
Your Fellow Crypto-Knight,
- mastaz -