#Tether Is Tether (USDT) really backed by US Dollars? What’s the proof? Published 5 months ago on September 11, 2018 By Nadja Eriksson Share Tweet Trying to decode the reliability of Tether. Introduction Gaining stability in the cryptocurrency market was very crucial, as volatility has always been haunting the cryptocurrencies space. All the investors as well as daily traders make use of the volatility, in order to make profits out of it, at certain point of times it is very crucial to have stability within the cryptocurrency market, for many cryptocurrencies have been developed in order to mitigate the stability but most have been most of them have been prone to the volatility attacks of the uncertainties due to cryptocurrencies in the market. The original vision of Satoshi Nakamoto, of developing and commercializing a decentralized financial economy has become or is in the process of becoming a reality, but one thing is for sure that even he wouldn’t have imagined the scale and pace at which the cryptocurrencies has been expanding within the past decade. Let’s read about the first stable coin in the cryptocurrency world: Tether and see if it is really reliable? Tether Tether or USDT is one of the most popular cryptocurrencies developed in order to provide stability within the cryptocurrency market it is its working functionality is such that the value of 1 USDT is always maintained somehow with that of 1 US dollar. The need for the stable coin in the cryptocurrency market is very much, as an immense amount of losses used to happen before the invention of Tether, due to a slight amount of price slippage issues. Tether has been the most popular stable coin, apart from many of its counterparts in the cryptocurrency market. Why was Tether required? It was said that it was it is not safe enough to keep your cryptocurrency friends on the exchange itself in the form of an online wallet but preferred that they transfer the amount to their personal hardware wallets. But, as the network gets busy the transaction takes longer time and hence due to price slippages, the investors had to face a huge amount of losses but this is where the stable coins like tether come into the picture. The users can easily convert their volatile cryptocurrencies into a nonvolatile Tether cryptocurrency and can effectively avail the profits without any slippage losses. Claims by Tether officials According to the professionals, all amount of Tether is backed by the same amount of US dollars in the bank or indirectly we can say that this particular cryptocurrency entails the features of a fiat currency but along with the powers of Blockchain technology. The Tether Blockchain platform was actually initiated by the same person who is the man behind the cryptocurrency exchange, Bitfinex. However, high amounts of speculations as well as accusations hover around Tether, as it is speculated to be a scam. To be very specific, not a single authority has confirmed that the cryptocurrency blockchain platform is really backed by an equivalent amount of Fiat currency is deposited in the Bank. On the contrary, it is just their cryptocurrency website that claims to be highly reliable and trustworthy. Is Tether reliable? According to them, the reserves are audited on a consistent basis by professional auditing experts. Friedman LLP happened to be their first auditors,. The Tether blockchain platforms seem to have a relationship with some of the major banks across the world like Puerto Rico and ING. The huge amount of bank deposits within a duration of one year that Puerto Rico experienced, is roughly equivalent to the total amount of data distributed within the cryptocurrency space, this can be considered as a legitimate but ambiguous explanation of the reliability of Tether tokens. Conclusion Nothing can be predicted with respect to the trustworthiness of the Tether blockchain project. It is very common in the cryptocurrency space to consider any fraudulent company to be innocent until and unless it reveals its true colors before everyone. The situation seems to be very ambiguous and unclear when it comes to the legitimacy of the coin. Any government or any professional auditing organization must raid into the offices and force the people to open their ledger and reveal the proofs of their reliability. Or we just might not be aware, at any point of time that the project might actually be a scam. Related Topics:Blockchaincryptocrypto tradingcryptocurrencycryptocurrency markettethertether blockchaintether cointether cryptotether cryptocurrencytether exchangetether markettether stable cointether stablecointether tokentether tradingtether usdttether wallettradingUSDTusdt coinUSDT cryptocurrencyUSDT exchangeUSDT marketUSDT to BTCusdt tokenUSDT wallet Up Next Free Coin/Token Listing on Exchange Don't Miss Ethereum Price Analysis: ETH/USD bearish trend, 11 Sep. Continue Reading You may like Alert: The Last Chance to Buy Cheap Bitcoin: BTC to the Moon! Alert: Polkadot Blockchain: A threat to Ethereum? Bitcoin: Are we ready for the next crypto bull run? Ripple Price Analysis: XRP Ready for the Major Bull Run? Ethereum Price Analysis: ETH going to correct downwards? Apple going to launch its own blockchain soon? 5 Comments 5 Comments Pingback: Is Tether (USDT) really backed by US Dollars? What’s the proof? - Satoshiuncle Pingback: Is Tether (USDT) really backed by US Dollars? What’s the proof? – The Coinage Times Ashwani nagrani September 11, 2018 at 5:35 am this is bullshit meantime tether allow buy in bearish market any coin which you want to manipulate later. or simple words btc eth big head are playing with small altcoins to d-evaluate. uphold is there we can swap through uphold why only shit tether. bullshit stable coin Reply ChrisEvan September 11, 2018 at 10:59 am Tether is backed by its usage. The rules of accounting allow for this. If you don’t like it, make your own! Reply Pingback: Tether: Biggest Scam of Cryptocurrency? | Coinance: Bitcoin, Ethereum, Blockchain & Cryptocurrency News Leave a Reply Cancel reply Your email address will not be published. Required fields are marked *Comment Name * Email * Website #Exchange Is BitMEX trading against their customers? Foul play at BitMEX? Published 2 months ago on December 12, 2018 By Joyce Lang BitMEX is currently the largest Bitcoin Exchange according to trading volume, and BitMEX research is going pretty good regarding market research, but is BitMEX really that ethical? Let us explore. Registered in Seychelles, BitMEX is not required to report to any regulator. This article is sourced through various articles submitted on Medium, Reddit and social media like Twitter. Does BitMEX trade against its Customers? Before I start to answer this question, let us understand the concept of Market Making. Market makers are the one responsible for filling up the order books. They also buy and sell continuously, proving the necessary liquidity to the market. Market makers quote on both sides of the order book, that means both the buy side and the sell side. If their buy order gets executed, their immediate plan is to execute the sell order as well, thus acting as a neutral market maker. So a market maker profits from a spread instead of up-down movements of the market, in return offering quick liquidity to the users. The question is thus, is BitMEX acting as a neutral market maker (which is a positive service to its customers) or not. On 30th of April, 2018, MitMEX updated its Terms of Service. It says: “BitMEX has a for-profit trading business that, among other things, transacts in products traded on the BitMEX platform. The trading business primarily trades as a market maker” BitMEX also states that its profit does NOT come from trading: BitMEX claims that its goal is to breakeven regarding profit and loss and that they make money by the service fee paid by the business. But unfortunately, there is no way to check BitMEX’s audit report as they have never released an external audit of their business. BitMEX’s legal counsel, Sullivan & Cromwell was silently removed from their blog post from April. It’s earlier post stated this: Later in May 2018, the updated post said this: It is a possibility that Sullivan & Cromwell separated from BitMEX because it had issues with the exchange’s plans. BitMEX’s Desk should not be allowed to trade freely on the exchange Let’s assume the owner (or owner’s employees) of an online casino is allowed to play its own game, can he resist from not looking at everyone else’s cards? Same goes with an online Bitcoin exchange. If BitMEX’s desk is allowed to trade on their own exchange freely, we can expect a similar outcome. This gives “extra information” to the desk, which is not available to all other customers. While some information is available to all the customers, for example, the order book or the past trades, additional information like the degree of leverage of each position or the price at which it will run out of margin is private and is only available to the BitMEX’s desk. In a blog post, BitMEX has denied that it gives this explicit information to its desk, but BitMEX has not agreed to give out equal information to all the customers especially the two mentioned above. Many users suspect that BitMEX gives unfair advantages to its desk. What are your views on the above? Comment below and let everyone know. Continue Reading #Tether Tether loosing dominance and public interest Published 3 months ago on November 28, 2018 By Janet F. Sanchez Binance has announced that their USD markets will be diversifying into other USD stablecoins. In particular, it appears that PAXOS will be a base token with pairings in BNB, BTC, ETH, XRP, EOS, and XLM. As the news is coming from the biggest exchange in the world, it can have a very serious impact on the crypto industry. Post Tether Era: A post Tether era is evidently forming at the moment with the increasing market cap of different stable coins. This proves to be an important indicator that both traders and investors are moving away from Tether especially when given the option to ERC20 based USD coins which are not only more transparent but also regulated and easier to store. To add to Tether’s woes, the US Department of justice is probing Tether-Bitcoin price manipulation on Bitfinex. TUSD, Gemini Dollar, USDC, Paxos as well as Makerdao are all entering new markets on a near-daily basis. But this new move by Paxos may set it in a league of its own. Which stablecoin do you think will take over the dominance of Tether in the coming days? Tell us your thoughts in the comments section below. Continue Reading #Tether Tether and Bitfinex might be in a big trouble soon Published 3 months ago on November 21, 2018 By Nadja Eriksson The US Department of Justice and the Commodity Futures Trading Commission are setting up an inquiry on Tether’s role in the price manipulation of Bitcoin during the massive growth of the cryptocurrency last year. Earlier this year, the department of justice was initiating a criminal probe in the role of traders for price manipulation of Bitcoin in 2017 end when it reached an all-time high of $20000. Now the department is suspicious of the involvement of Tether and Bitfinex Exchange in the same matter. The department believes that the price of bitcoin was forcefully pushed up with the help of Tether Stablecoin. The Investigation The department is currently carrying out an investigation to determine whether Bitfinex along with Tether practiced illicit trading activities to increase the price of bitcoin. Earlier the US Commodity and Futures Trading Commission was also investigating the activities of both Bitfinex and Tether and now both the departments will together investigate into both the cryptocurrency companies. The officials have not disclosed yet whether the investigation is only on the companies or on the company executives as well. Earlier this year, a professor of Texas University examined the involvement of Tether for manipulating the price of bitcoin by using trading algorithms to increase the prices. The research disclosed that Bitfinex Exchange uses Tether Stablecoin to buy bitcoin when the price is low using algorithms. Tether Defends Tether, however, defended themselves by calling all the statements as false. Tether explained that the there is a limited supply of the USDT tokens and that every USDT is backed by 1$ which is kept by the company in their bank account. What do you think about the above statements in relation to Tether and Bitfinex? Tell us in the comments section below. 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