Tether Continues to Wrap With Uncertainties
There has been a lot of development about Tether recently.. While allegedly stable, Tether and its proponent Bitfinex may be at the center of many volatility in the cryptocurrency industry.. Over the weekend, we reported that Tether was parting ways with the audit firm.. After these news about Tether, the suspicions of people who already suspect that the company is doing business behind closed doors have intensified.. The community hoped that Tether’s work would be audited, but after months of waiting, that expectation was dashed when Friedman LLP stepped in.
Tether, Friedman, and the Audit That Never Happened
Tether’s story is now began to return to the children’s fairy tale. The story has been told so many times that some truths in the story are now tarnished.. The real thing is that Tether tokens, which have a fixed price of $1, are used by millions of cryptocurrency investors and a few major cryptocurrency exchanges as a “proxy” for fiat money.. There aren’t many people who have a problem with this, who don’t like Tether and Bitfinex (the exchange whose owners also own shares in Tether).
Coinbase generates $1 billion in revenue per year, while Binance $300 million It would not be out of place to say that exchanges are not in a tight spot for money, while Coincheck is able to compensate users who suffered from the $400 million NEM attack.. What’s causing people to worry is that Tether is doing business in secret.. Last year, Tether reluctantly agreed to a public audit after rumors surfaced that Tether didn’t have enough dollars to pay for the USDT it put on the market.. While investors were waiting for the audit report to be published, this process was delayed and delayed, and now people are starting to say that this audit will never be published.. They were right.
Lafla Cheese Ship Is Going…
Friedman LLP released a statement about the end of her relationship with Tether, but did not give much detail as to why the relationship ended.. The biggest fear of people about the relationship between these two was the possibility that as a result of the audits, it was revealed that Tether did not have enough Dollars to cover the USDTs produced by Tether, which is producing around 500 million every week this year.. But even if Tether or Bitfinex turned out to have enough Dollars, the cause for fear would not go away.. If Tether owns as many USD as the USDT it produces, but keeps producing USDT according to its own mind without any valid reason, there is still a problem.
When we look at it on paper, when Tether’s bank account is paid with fiat money, it is not possible to create USDT in bulk. It should be a very simple process.. Supervision of this process should be at least as simple.. The audit was also announced after rumors emerged that Friedman LLP would conduct a “comprehensive balance sheet audit” around May 2017.. Tether said in its announcement that it was ending its relationship with Friedman LLP:
“We confirm the end of relationship with Friedman. As a result of Friedman’s implementation of detailed procedures to the extent of torture for Tether’s relatively simple balance sheet, it has become clear that we will not be able to provide an audit in the near future.”
Actually, it should be extremely simple. Controversy continues among the community about why a process has become so complex. Of course, Tether’s nemesis, user “Bitfinex’ed” also commented: They were hired to oversee their transactions.
Hiring Friedman LLP is like a Bitcoin investor calling a mechanic to fix his Lamborghini.
The mechanic doesn’t need to know anything about blockchain.”
The Balance Sheet
Not many people intend to be downright Tether hostile like Bitfinex’ed. People just want to make sure that everything is in order and that nothing suddenly happens to them when investing in cryptocurrencies.. It is difficult to predict to what extent the collapse or interruption of a company like Tether will affect the market, but it is certain that this effect will not be very good and the collapse in the market may even take months.. While Tether was keeping quiet about all this, another “hardcoin” alternative, Trusttoken, started to emerge slowly.
Some crypto experts think the stablecoin idea won’t work and will ultimately fail.. The reason for this failure may be the intervention from the states, or the inability to keep the coin price, which should be stable,. Tether, for example, can slightly exceed the $1 mark when Bitcoin was in a slump and dropped to just under $1 last weekend when the Friedman news broke.. It is unclear whether the coins emerging as alternatives to Tether will be able to break through these hurdles.. Considering Tether’s suffering due to the current uncertainties, a stablecoin trying to replace Tether will have to work hard to prove that the company is properly regulated and has the highest level of transparency.
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