Bitcoin Global News (BGN)
August 15, 2018 -- ADVFN Crypto NewsWire -- If you’ve been involved
in the Crypto space for any period of time greater than a few
months, than you have definitely heard of the Tether
network. If you’ve done any sort of individual Google search on
the subject, then you know that calling it a controversial
undertaking is probably somewhat of an
understatement.
To recap, in the case of anyone
interested in trading in US dollars, the way Tether attracts most
of its users is by offering what is meant to be a proprietary
token(USDT), that is supposedly backed by real cash
reserves.
Related to this, it has been
suggested time and time again that Tether allow a qualified
external audit to occur, with the aim of proving said cash
reserves. The trouble with this is that to date, this process has
never been completed.
This is not to say that it has not
been tried. One auditor, Friedman LLP, did get as far as
to release a preliminary
report on its findings, but before they could finalize
their audit, Tether apparently stopped them in their
tracks.
Since this relationship was
dissolved, no information has been made public to the effect that
any company has followed them in their efforts.
Over the weekend, Tether
released $50 million new
tokens (USDT) into the Crypto market, which some industry
insiders would say indicates that they are trying to reverse a
Crypto bear market. If you’re not clear on how Tether could have
such an effect on such a massive market, look no further than the
study done by Amin Shams and John Griffin, which was made public this
June.
In a nutshell, Shams and Griffin
concluded that it is strongly suggested that when the price of
Bitcoin falls, something truly interesting occurs. More
specifically, they found that it is strongly possible that some
group of people who work at the Bitfinex exchange as well as at
Tether, collude to prop up the Bitcoin price, beginning with
issuing new Tether coins. To further explain, they found through
different sorts of financially related analyses, that when Tether
coins are issued, the Bitcoin price likely “artificially” goes
up.
Given all of this, together with
the fact that those behind Tether and Bitfinex have not yet tried
to introduce any quantitatively backed argument to refute this
study, Tether’s place and influence in the industry is shaky at
best.
On top of this, the central
question remains: will anyone challenge the existence of their cash
reserves once again?
By: BGN Editorial Staff
News:
Tether
(USDT)
Cryptocurrency