2018-6-20 21:09 |
Tether has consistently denied this, but has not produced conclusive evidence that it is reserved 1-for-1.
An academic paper released last week supported this view, and the Commodity Futures Trading Commission reportedly subpoenaed Bitfinex and Tether in December.
Traders use it to quickly move money between crypto exchanges rather than using bank wire transfers, which can be slow and hard to come by.
Given USDT’s importance to the ecosystem, then, an independent confirmation that the coin is in fact fully collateralized might be welcome news, undermining the manipulation claims and bolstering market confidence.
In other words, it doesn’t purport to show that USDT has been consistently secured over time – or that it is fully backed today.
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