Tether’s another legal report aimed to settle the solvency debate
Tether, USD-backed stablecoin, had to carry out a legal report, a second time in six months, to fight back the critics it has been facing recently. Among the concerns of cryptocurrency community was the fact of printing additional $300 million Tether.
Tether made an audit
The community has got doubts that Tether is holding the equivalent amount in dollars to back the digital currency. The Tether was also recently accused in Bitcoin price manipulation. A study by Texas university researchers suggests that the rise of Bitcoin in late 2017 is bounded with initiated artificial demand and these operations are executed using Tether.
The Transparency Report published by Tether on June 20 is aimed to dispel all the doubts about the USD-backed digital currency. “To address allegations head-on, we wish to make a few things clear: All Tethers in circulation are fully backed by USD reserves. Full stop. Memoranda, consulting reports, industry leaders, cryptocurrency pioneers, and competitors have all confirmed this. Reserves always have, and will always, match the number of Tethers in circulation,” the representatives of Tether commented on the report.
Nevertheless, the doubts are not fully vanished. Some of crypto community members are not satisfied with the report by the legal firm and claim it cannot be considered as a professional audit. They claim only a professional audit may restore the community’s trust. The report for them does not demonstrate that each Tether is secured, even though the firm has demonstrated that it had enough USD to back each USDT.