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154 Review
169 Karma
Review on Tether by Mr Benji
Scam or best?
Backed ?!
each one tether should be backed by real dollars held by Tether Limited in its account. While the number of tethers is verifiable on omnichest info, the amount of actual US dollars can only be substantiated by bank statements or by periodic audits, which the company also encountered during 2018, where the whole system's credibility, often referred to as " Proof of Reserves ”
Problems with tether coverage:
Suspicious since the end of last year that his coins were not real dollars. These fears were also recorded by the sharp rise in new tether emissions over the past autumn. In September 2017, Friedman LL was audited to state that on March 31, 2017, Tether owned nearly $ 442 million, but it was not disclosed in which banks the money was located. Their names were blackened in the public report. At the same time, the report said Tether should increase 5 times its capacity within 10 months.
U S Pat Therefore, the Commodity Futures Trading Commission (CFTC) sent a summons to Bitfinex and its sister company, Tether, to prove $ 2.3 billion in ownership of the issued coins.
In June 2018, a law firm founded by former federal judges Freeh, Sporkin & Sullivan LLP issued a report confirming that Tether had sufficient reserves on 1 June 2018 to cover its virtual currency. According to the confirmation of two banks, where Tether has its accounts, the company has about $ 2.55 billion, which at that date even exceeded the USDT $ 7 million market ceiling.
This has undermined the serious concerns that Tether can guarantee the operation of its cryptocurrency and contributed to greater transparency of the project. The main problem he had recorded for the blackest scenarios was whether the bitcoin price had been pumped through the unfamiliar tethers in the last quarter of 2017. Research on the University of Texas even dealt with this issue.
My take:
The principle of stablecoins, which we can use to transfer investments between fiat and digital currencies, in terms of protection from great volatility, which could harm us, is obvious and usable in the cryptocurrency world. The risk may be hidden in what is also problematic with fiat currencies, that is, the cryptocurrency will not be covered by the actual declared value.
Updated 5 years ago
Rating changed from 3 to 2
Very weird action was taken by Tether they printed 5 billions dollars by a mistake it was burned right away, but I don't like it at all you can print money whenever you can adding few zeros who care this is not what crypto is about.
Pros
- Several decisions prove that it is used in accordance with the law
- It should be audited
- Proof of reserves
Cons
- There are still views that the whole Tether system is being manipulated by scam
- Problems with Tether coverage
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Comments (1)
October 01, 2019
What do you mean when you write about "Tether coverage"? For this moment USDT is the most famous and how is your rating only two stars if this stable coin really save people’s money when the market is going down.
