Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Stable Coins Forum => Topic started by: PRIBO247 on December 20, 2018, 03:19:56 PM
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Reports have surfaced that suggest Tether has got the billions to
back its promises to suggest that the stablecoin could be backed
one-to-one by dollars. That said, the reserves do not necessarily
prove the innocence of Tether in a laundry list of other
mismanagement.
Earlier in the week, it was reported by Bloomberg that “Crypto-
Mystery Clues Suggest Tether Has the Billions It Promised,”
alluding to statements which go back four months of money cash
held in Tether’s dollar reserves. Unfortunately, though, these
claims don’t ensure the leading stablecoin to be backed one-to-
one prior to the date of the bank statements, or even somewhere in
between reporting periods.
As found by Bloomberg, the information they have obtained
doesn’t eradicate Tether potential misconduct or alleged
manipulation in the market.
As reported by one of Bloomberg’s recent new pieces, “one
statement shows $2.2 billion was in Tether’s account at Puerto
Rico’s Noble Bank Ltd. on Jan. 31. That same day, 2.195 billion
Tethers existed.”
As reported by CryptoSlate , “these claims could suggest Tether
really is backed one-to-one by dollars, calming the overwhelming
skepticism around Tether’s marketing claims. Some in the media
have trumpeted the report, falsely suggesting that Tether is backed
by deposits of USD and downplaying the risks involved with
owning the coin.”
Tether’s controversy
There is a huge amount of Tether tokens (USDT) in the circulating
supply right now, considering the crucial importance of Tether in
the crypto space, the amount of controversy around it is jaw-
dropping.
There have been a lot of inquiries asking whether the leading
stablecoin is a scam with several news outlets writing on the
topic, there is even an army of authors on Medium and similar
platforms spreading the controversy.
Manipulation
On top of all this, a research paper authored by the Chairman in
Finance at McCombs School of Business at the University of Texas
in Austin, John Griffin studied the chances of the manipulation for
the price of Bitcoin by utilising Tether.
In the Study, it says that if Tether was sent onto exchanges instead
of demanded by investors with dollars in hand, then the stablecoin
might be fully backed by dollars when it gets issued. In addition to
this, using Tether’s digital currency reserves, the firm will be able
to move its assets around to claim that their holding is completely
backed.
“However, if the issuers [Tether Ltd.] wished to post monthly b
statements to shore up dollar reserves and appear fully bac
this would necessitate the liquidation of the purchased Bitcoin
the end-of-the-months.” later in study is confirms the relation
between demand from the investor to the price of Bitcoin, ”th
patterns cannot be explained by investor demand proxies but
most consistent with the supply-based hypothesis where Tethe
used to provide price support and manipulate cryptocurre
prices.”
https://cryptodaily.co.uk/2018/12/