What is the Tether laced as “stable crypt money”? What are the claims about you?
Bitcoin’s excessive rise during the past year and the incredible fall over the month we have passed have raised a lot of questions about the stability of crypt money. In this sense, Tether was put on the market as a “stable cryptocurrency“, attracting a lot of interest from investors. Now, Tether’s credibility is questioned; Concerns are mounting that Bitcoin may affect its price and many other virtual money markets severely.
Tether, which was founded in 2015, has gained confidence in this sense, but recently it has been observed that investors’ confidence in this cryptocurrency has been reduced with a series of sanctions against them. Investors were particularly afraid that the Commodity Futures Commission (CFTC) in the US had sent a court to the founders of the virtual money market, Bitfinex and Tether, which supported Tether, on December 6th.
What is a tether? What are the general claims and doubts?
What is it, Tether? Tether, also known as the USDT, is a virtual currency that started trading three years ago. The company behind Tether claims that virtual money is fixed on the moon. Therefore, the desired stability in the Tether and the dollar can be used as digital money. This means investors will be able to quickly and cheaply transfer between different platforms without having to translate different virtual funds into the dolls.
Tether is aiming to offer a stable alternative because many platforms encounter problems when working with traditional banks due to their cautious stance towards crypto paralysis. For this reason, this mysterious crypto money has a widespread use in the Internet sites like Bitfinex, where Bitcoin is bought, instead of dollars. According to Tether Limited’s claim, the company always has a dollar reserve/reserve for all its virtual money.
Skeptics say the company has not provided any proof of the Tether authorities and that their accounts have not been audited to prove it. Tether’s spokesman Ronn Torossian said in a statement he made in December that the company would publish the full audit report as soon as possible. However, the official report promised to be published is still missing.
Nevertheless, in September the audit company, Friedman LLP reported that the company had $ 442.9 million in cash as of September 15, and covered all of its Tether money, according to an interim report. In contrast, a lawyer with a digital money expert who spoke to the New York Times had said that the letter was not written to prove that Tether’s money was supported by dollars.
What is the connection between Bitfinex and Tether?
What are the claims against Tether and Bitfinex? Let us explain it as follows: There is much speculation about the connection between Tether and the world’s largest Bitcoin Stock Exchange to Bitfinex. According to Bloomberg HT, neither Neither Tether nor Bitfinex’s website has information about where their headquarters is or who is qualified. Torossian, who is also the spokesman for Bitfinex, stated that in December the CEOs of both companies were Jan Ludovicus van der Velde. According to Coindesk, Torossian also said that the company’s strategy mentor, Phil Potter, CFO is Giant Giant Giant. However, from these names until today, neither did they come to a complete knowledge nor an official explanation.
It is not clear how the tethers are produced, but the traders think each virtual dollar is worth $ 1. IPC Systems Inc. Barry Leybovich, the product manager for a company that provides financial communication services between companies, said that last month Bitcoin’s transaction with Tether in Bitfinex was effective in raising Bitcoin prices.