Tether (USDT) is not backed by a 100% dollar support

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Tether (USDT), and had previously faced numerous allegations of insolvency support their stable tokens and manipulation. Now the project team is again under attack by the crypto community after users found the updated terms of support. According to the website, Tether, token USDT never expect 100% support from piatogo dollar.

One user on Reddit pointed out that he had noticed some changes in the terms Tether support their stable token.

If the old statement was that the Tether is always provided in a ratio of 1 : 1 stored in the accounts currency and 1 USDT always equivalent to 1USD.

New changes, provoked a lot of speculation

In the updated report presents the data a bit changed.

They say that each stable token USDT is always 100% secured by reserves, which include traditional currency and its equivalents, and may be supported by other assets and loans to Tether third-party affiliates. Although the report stated that each Tether (USDT) is also pegged to the dollar at a ratio of 1 : 1 and 1 USDT always equivalent to 1USD, but many felt that in this way the Tether admitted that their USDT no longer secured by 100% reserves in US dollars and may actually include debts on loans and “other assets”.

This addition has caused a lot of speculation and claims that “other assets” actually relate to cryptocurrency. Some pointed out that the term “affiliates” may indicate Bitfinex.

Of course, this has always been the subject of controversy, as Bitfinex and Tether have one General Director Jean-Louis van de Velde, which in the opinion of many, indicates a clear conflict of interest.

However, many responded that it has long been suspected about this situation.

Tether always received a large dose of criticism when it came to its reserves. In June 2018 Tether has hired a legal firm to check the independent audit firm. The report stated that each USDT in circulation actually secured a USD, but the report of the law firm was not an official guarantee and gave rise to numerous speculation about the potential insolvency.

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Tags: Tether

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