BTC Wires

Was There Foul Play Involved In Tether’s Volume In June?

The charts have been going up and down a lot these past few days, as the market experiences a period of extreme volatility.

Though most of the industry is watching the fluctuating prices of BTC, some are looking at Tether quite suspiciously, claiming that the stablecoin is responsible for some major foul play.

The startup behind Tether has been frequently accused of manipulating the market and The numbers and accounting practices that the company has presented are quite problematic. A lot of market experts feel that there is a lack of transparency in Tether and that it is responsible for a lot of the market volatility that we witness.

Tether has mostly been accused of  not having United States dollars backing, which it claims it does. This is so because the amount of Tether tokens out there are just too high in number and it is insane.

Most critics believe that the stablecoin is operating on a fractional reserve basis, which means that it only holds a fraction of the dollars that it should in order to back the currency 1:1 with USD. Tether has however countered this rumour and revealed that they have 100% of the reserves needed, but it is indeed not 1:1 collateralized with fiat, let alone USD.

It is indeed a very tricky situation with Tether and the accusations are not stopping anytime soon. We’ll have to see how Tether responds to the situation now.