Tether: The Truth Always Comes Out
March 14 2019 - 12:22PM
ADVFN Crypto NewsWire
Bitcoin Global News (BGN)
March 14, 2019 -- ADVFN Crypto NewsWire -- By now, if you have
been in crypto for any length of time, then you have heard
something about Tether’s USDT stablecoin. What is most likely is
that you have heard that USDT’s reserves have not ever been truly
proven over the course of its’ history.
Today, that has changed, though
whether or not the change is a good thing for the future adoption
of USDT remains to be seen. The specific announcement which is
being used as a primary source by CoinDesk and others reportedly
states that USDT is fully backed, but not exclusively by what the
company calls “traditional currency.”
While, as of now, they have not
specified what exactly this means, they have made clear that this
includes other assets which are taken in, in exchange for USDT
loans. Speculating further on what this means would be inadvisable
at this point without more hard data on the subject.
Still, this announcement does
remind us of the importance of one question that no firm seems to
have completely answered. Shouldn’t stablecoins be fully audited,
at least once a year? Related to this, are attestations an
acceptable substitute for this, since they seem to be the
alternative route that just about every stablecoin company,
including Tether, seems to be taking?
In Tether’s case, matters become
even more uncertain when one takes into account the fact that until
this announcement, they had been steadfast in their claim that all
of their coins were always equally backed by US Dollars.
This uncertainty actually extends
beyond USDT. If knowing this should teach crypto investors
anything, it is that until this transparency issue is solved, it
would appear to be inadvisable to trust any stablecoin project,
without doing a considerable amount of research on its’ holdings
first.
By: BGN Editorial Staff
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