The idea was simple: cryptocurrencies, one which always and invariably equal to one dollar because it is backed up by real dollars lying in the Bank. Just imagine: dollars on the blockchain with the power of cryptocurrency, which can be quickly and without permission to move in any amount… without any inconvenient adjustment.
Now handling 2.7 billion Tether, but the situation does not look so simple, what was the initial idea. Who created the Tether? The same people who are behind the Bitfinex team. They have a common CEO, CFO and, until recently, CSO. This no one doubts. But everything else is shrouded in thick fog and a mystery.
Tether: what the hell is that in the world of cryptocurrency?
Who buys Tether? It’s hard to say. You can buy it for dollars (USD) at multiple exchanges like Kraken and BitFinex, but try to find public examples of how anybody, institution or person buys a “Taser” BitFinex, and good luck to you. Who provides USD brand new printed USDT? It’s hard to say.
Who conducts the audit to verify that USDT a real USD? Yeah, like, nobody. Despite the fact that on its website Tether assures that their reserve accumulation “undergo frequent professional audit, and our reserve account is regularly audited”. Relationship with the first Tether auditor, Friedman LLP, the company is trying to hide, because no audit was not, and “proof of funds”, “transparent upgrades”, which they say have replaced the audit results and does not have to overlap.
If we have reason to believe that the dollars supporting USDT, actually exist? Well, like, yeah. The fact that the “transparent report” Tether is not an audit, to which no one will have issues, doesn’t change the fact of the report. That is, there must be at least some evidence that almost three billion dollars, theoretically supporting the widely used asset do somewhere. At Tether have relationships with banks in Puerto Rico, and the strong growth of Bank savings in Puerto Rico over the past year can match the number of USDT, released at the same time.
How to Tether exchanged for US dollars? This question is both easy and difficult to answer. If you try to find a public example of the fact that the Tether actually someone did — good luck to you. The fact that users in the U.S. this exchange is not yet. Stock exchange and corporate customers can directly contact Tether to organize the output.
However! The most interesting thing about this is that you don’t need to exchange USD for USDT. As long as cryptocurrency exchanges believe that Tether costs one dollar, you can buy USDT bitcoins or any other coin, and then exchange and display them in dollars. Matters only exchange Tether. While it’s supported, it doesn’t matter whether USDT backed by dollars. Until some incident.
What kind of incident can happen? On the subject of Tether almost monograph is written. It’s a pretty deep rabbit hole. For example, researchers from the University of Texas accused Bitfinex/Tether in the price manipulation in Bitcoin (to overestimate). Regulators from the US have appealed to organizations to claim requests. Perhaps the U.S. Department of justice launched an investigation about the manipulation of the prices of cryptocurrency, which is still ongoing. We also conducted the comparison with Liberty Reserve, digital cash, which was closed for money laundering five years ago.
So where did the hype around the Tether? On the one hand, people and even companies are innocent until, until found guilty, and the opacity of cryptocurrency companies, at least morally to the industry as a whole. Wildly disproportionate people in the crypt is a maximalist in terms of privacy that really hate and fear the government.
On the other hand, it’s one thing to be afraid of losing encryption keys, and the other is afraid of the tax. Some people fear that in the absence of regulatory bodies, the invisible hand will do with the price of the cryptocurrency that you want.
What all can you do with Tether? There are four possible answers: 1) serious, competent, confidential audit by professional organizations; 2) judicial, regulatory or criminal investigation which will cause the Tether to disclose their schemes; 3) to believe the rumors; 4) not to believe the rumors. In the meantime, the veil of secrecy will cover the whole of this gang-watering can, and users will be still until in one USDT, you can buy the same amount of bitcoins, how much is it for one dollar. Anywhere as you want.
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