A recent announcement from the bank Tether uses (Deltec Bank) has once again called the amount of reserves Tether has into question.
The swaps are quoted in USDT, marking the first time Huobi Futures has offered such trades entirely in digital currency.
Authorities identified bank accounts belonging to digital currency OTC traders suspected of involvement in illegal money laundering activity.
Given the concern regarding Tether actually being fully backed, the event seems counter-intuitive to what is supposed to be the nature of Bitcoin.
Tether doesn’t believe there’s any merit to the accusation that it helped create the “largest bubble in history” and rejects claims that it has manipulated the cryptocurrency market in any way.
A roundup on recent Bitfinex and Tether news: Tether Treasury prints new USDT coins, while lawyers for Bitfinex appeal NYAG documents collection request.
If there was any doubt over whether or not Tether knew what it was doing, that doubt has now been removed and it is apparent that it doesn’t.
Tether only has enough cash on hand to back three-fourths of the supply of USDT, according to recently released documents.
There have always been questions about whether or not USDT was actually truly tied to the U.S. dollar as Tether had asserted from the beginning.
Ever since it was first introduced, there have been questions about the legitimacy of the Tether (USDT) stablecoin.
Tether, which trades at around 1:1 with the U.S. dollar, has just printed a quarter of a billion USDT tokens, according to the Omni Explorer.