Tether which is a stable token which is claimed to be backed by the US dollar has been in the spotlight of controversy as many people suspect that tether tokens are being issued without the backing of the US dollar. The lack of transparency company has even increased the suspicions.
Most recently (Tuesday at 6:51 PM UTC) 300mn tokens were issued according to the data from omni explorer.It is the first time in over a month Tether issued more USDT tokens through OMNI. In mid-February, Tether had released 86 mln in euro-backed EURT and 61.1 mln in US dollar-based USDT on the Ethereum (ETH) Blockchain.Tether has issued nearly $1bn worth of tokens since January and currently, over $2.52 billion tether is in circulation.
Tether is owned by Bitfinex which is one of the largest exchanges, the company has no ties with the Federal Reserve.Subpoenas from the U.S. Commodity Futures Trading Commission were sent to Tether on December 6, 2017, and until now tether has not gone through a proper audit of the cash reserve and have not been transparent about this issue. But that does not mean that they are doing any illegal activity. We will only know for sure when there are a proper audit and transparency in this regard.
People say that this has been affecting the price of bitcoin and tether was one of the factors for the major price hike in December.
Bitfinex’ed who is a critic of tether tweeted:
https://twitter.com/Bitfinexed/status/976179019191410688
Among many of these uncertainties, it may also be the case that tether is backed by enough cash reserves and there has not been anything to worry after all. We will have to wait and see how things will play out.
Source:
Controversial Tether Issues $300 Mln In New Tokens, Critics React
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