#Tether Is Tether (USDT) really backed by US Dollars? What’s the proof? Published 2 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 Tether and Bitfinex might be in a big trouble soon Tom Lee: Bitcoin will hit $15000 within next month Gstar: A mobile based blockchain system Big Whale Alert! 999992 TUSD just transferred to Binance Cryptocurrency Updates: Bakkt delay, Tron event, Banco Santander fraud and more. Craig Wright: ETH is useless, XRP is an Illegal Scam 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 #Tether Tether and Bitfinex might be in a big trouble soon Published 4 hours 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. Continue Reading #Tether Tether moving out of Stablecoin business? Published 4 weeks ago on October 24, 2018 By Janet F. Sanchez In an official announcement on Wednesday, October 24, Tether, the issues of questionable stablecoin USDT affirmed that it has “redeemed a particular amount” of USDT from dissemination. In the most recent month, the market cap of Tether (USDT) is on a downfall. The most recent official announcement originating from Tether noticed that it will now destroy 500 million USDT tokens from its own treasury wallet. The total articulation from the organization peruses: “Throughout the previous week, Tether has redeemed a lot of USDT from the supply. In accordance with this, Tether will destroy 500 million USDT from the Tether treasury wallet and will leave the rest of the USDT (approx 466m) in the wallet as a preliminary measure for future USDT issuances.” There is not a lot suspicious seeing the current procedure as “Tether issuance and redemption process is laid out in the Tether whitepaper. The firm expresses: “each tether issued or redeemed, as openly recorded by the Bitcoin blockchain will compare to a deposit or withdrawal of funds from the [company’s] bank account.” One can check every one of the issuances and redemptions by checking the parity in the Tether Treasury wallet on the OMNI blockchain. From the official announcement, obviously, the 500 million worth USDT tokens which were redeemed and destroyed contributed 52% of the aggregate supply. While discussing fiat accounting, the Tether whitepaper takes note of that piece of “the ‘Solvency Equation’ for the Tether System [… ] the probability of [U.S. dollar reserves] will depend on a few procedures”. This incorporates distinctive professional audits and also the Tether’s production of bank account adjusts on its Transparency page (“Proof of Funds”). There have been a few questions cast on Tether’s transparency direct in the crypto business. Numerous specialists trusted Tether to have a suspicious association with Bitfinex exchange. A few allegations say that Tether used to source extra USDT tokens to Bitfinex without really backing them with physical USD. Moreover, a few allegations recommend that Bitfinex has been misleadingly blowing up Bitcoin value utilizing the USDT tokens. Questions about Tether’s suspicious conduct began getting steam after Tether broke down its association with third-party auditor Friedman LLP, prior this year in January. In any case, later in June, Tether got its stores examined from Freeh Sporkin and Sullivan who said that Tether had adequate stores for its coursing tokens held in an undisclosed bank. In another unforeseen development, a few reports likewise said that Tether is moving out of the stablecoin business. These cases were advanced by Su Zhu, Chief Executive Office of the Singapore-based fund manager Three Arrows Capital and an analyst under the name “Hasu”, in a medium post. Continue Reading #Tether Tether: It’s Make or Break for the Stablecoin Published 1 month ago on October 18, 2018 By Guest Author The idea behind Tether was simple. Establish a utility token that would be able to represent fiat currency at a ratio of 1:1, while offering the advantages of blockchain technology for cross-border payments. Tether was originally Realcoin, a project founded by Brock Pierce, Reeve Collins and Craig Sellars, before being rebranded in November of 2014. Early on in its history things seemed to be going as planned, although Tether’s relationship with crypto exchange Bitfinex has always been a source of scrutiny from the wider cryptocurrency community. Bitfinex and Tether The Hong Kong-based exchange added Tether to its exchange in January 2015, but it was the shared leadership that raised red flags for some critics. JL Van der Velde is CEO of both companies, while Giancarlo Devasini holds the position of the chief financial operator at both companies as well. Tether’s Bank Reserves Since it arrived on the scene in late 2014 Tether has always claimed that it has the required fiat reserves needed to back all tokens in circulation at any given time, and even provides a ledger on its website that shows Tether tokens accompanied by their underlying monetary reserve. Problems began to appear when an audit of its accounts was promised in 2017 and not delivered, leading to pressure from the crypto community that eventually led to a short review of Tether’s accounts by Friedman LLP, which can be found here. For many within the community, this just wasn’t enough. A full audit was promised, and after more pressure Tether eventually brought Friedman LLP back to conduct an audit in January of 2018. Around a month into the process, Tether put a halt to the audit, claiming that “the excruciatingly detailed procedures Friedman was undertaking for the relatively simple balance sheet of Tether” made it “clear that an audit would be unattainable in a reasonable timeframe.” Bitcoin Price Manipulation Following on from the scrapped audit, Bitmex released a report that claimed Tether had the required cash reserves in a bank account in Puerto Rico, but more trouble was to follow when the University of Texas issued a report claiming that Tether was responsible for Bitcoin price manipulation and quoted “incomplete tether backing.” In the same month the University of Texas report was released, US law firm Freeh Sporkin & Sullivan LLP claimed that they had access to two of Tethers bank accounts which confirmed they did have the required reserve of fiat currency to back the tokens in circulation. This, however, was not an official audit. More Pressure on USDT Tether Along with the report, Tether claimed that the mainstream accounting firms simply would not run an official audit of a cryptocurrency company and that this report was what they believed to be “the next best thing.” Shortly after the FSS report was published the company itself released a statement highlighting that “FSS is not an accounting firm, and did not perform the above review and confirmations using Generally Accepted Accounting Principles,” and that the results “should not be construed as the results of an audit.” Fast Forward to today, enter TrueUSD Now, we see Tether drop below $1, which has completely undermined its status as a stablecoin, and its relationship with Noble Bank in Puerto Rico is reportedly over. The truth is, Tether is in trouble. There are other stablecoins which have been created by highly reputable providers with real potential to provide an alternative to Tether. One such alternative is TrueUSD, who was represented by Ryan Rodenbaugh in this interview discussing Tether and the future of stablecoins along with European crypto exchange ETERBASE CEO Robert Auxt. The pressure is now on Tether to step up and prove that transparency matters, and that their position as a stablecoin is backed up by facts. Guest Post by Aubrey Hansen Continue Reading Advertisement Advertisement Latest Crypto News #Tether4 hours ago Tether and Bitfinex might be in a big trouble soon EOS4 hours ago EOS releases new version: V1.5.0.rc1, Here is all you need to know #Bitcoin5 hours ago Tom Lee: Bitcoin will hit $15000 within next month #Sponsored7 hours ago Gstar: A mobile based blockchain system #Bitcoin9 hours ago Big Whale Alert! 999992 TUSD just transferred to Binance Bitcoin9 hours ago Craig Wright, Stock Markets, Technology, Manipulation: What is the reason for Cryptocurrency Crash? 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