Tether Rises To 2.5 Billion Despite Skepticism

Tether rises to 2.5 billion despite skepticism. The much criticised stablecoin generated $250 million worth of new USDT tokens on May 18.

Tether issues the stablecoins USDT tokens, which are apparently pinned to the USD. Earlier in 2018, the company fired it’s auditor for reasons unknown – raising further suspicions amid skeptics.

One anonymous skeptical blogger “Bitfinex’ed” wrote:

“By allegedly firing their auditor, they’ve proven to me that something is catastrophically wrong with the transaction history”

The blogger has since hired a well known lawyer to represent him as he has been in a long battle with the company concerning his accusations.

Stephen Palley, from law firm Anderson Kill told CoinDesk what they sent to Hoegner:

“As you know, threats have been made and continue to be made against @bitfinex’ed. If we learn that your client is directly or indirectly responsible for these threats, or if any harm should take place to @bitfinex’ed as a result of these threats, there will be legal consequences”

Bitfinex is one of the largest cryptocurrency exchanges and it’s sister company tether is suing the blogger for questioning the stablecoin’s 1:1 USD ratio.

Tether isn’t the only stablecoins contender – Companies like Circle (backed by Goldman Sachs), TrueUSD and Basis have launched their own stablecoins.

A “stable coin” is a cryptocurrency that is pegged to a stable asset such as the US dollar. Although global, the currency isn’t controlled by a central bank and has low volatility. This enables token holders to use it for everyday purchases.

Tether is supported by fiat currency assets in a reserve account. The conversion rate is 1:1. The tether platform is considered to be fully backed if all tokens in circulation is equal to or less than fiat held in bank account. Advantage is that it comes close to fiat value and is well established. The disadvantages are that it’s centralized and can refuse to be audited.

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