Tether has been hitting rock bottom of TOP-10 cryptocurrencies list in terms of capitalization for a few weeks already. The uniqueness of this cryptocurrency lays in the fact that it is tightly tied to the US dollar, having its exchange rate at 1 USDT/1 USD with a slight deviation in one or another side.
According to the start-up developers, all issued tokens are supported with real assets. But nobody has ever seen them and no audit has ever been carried out. And now, Tether is again in the heart of another scandal.
Willful deceit or fraud scheme?For a long time, the developers and owners of Tether hadn’t disclosed the information about their assets. But in the early November, one of the company’s departments has states that it has recently been a customer of Deltec Bank & Trust Limited, where 1.8 billion US dollars are placed (as at 11.11.2018 the capitalization of Tether is 1.77 billion US dollars).
Deltec hasn’t confirmed or refuted this information. And even after the Bloomberg’s publication of the letter confirming the fact of the accounts existence, they decided not to give any comments.
At this point the community has several questions:
1. Whether there is any cover for Tether, discussed for more than one year? Isn’t it another manipulation?
2. Why this platform hasn’t still been independently audited?
3. What advantage (and therefore future) of Tether are we talking about, if it violates one of the basic blockchain principles – decentralization?
Since there still has been no any supporting information (except of allegations of the Tether representatives), this has once again shaken the investor’s confidence to this cryptocurrency. O Globo publishing house from Brazil added some more questions by informing that Deltec might be involved in the money-laundering scheme. The investigation of this matter is now conducted by the Federal Prosecutors’ Office of Sao Paulo. In truth, there is no direct confirmation of this information, as well as the confirmation that Tether really deals with Deltec. But we know that where there is smoke, there is fire, and the management of Tether is on the hop under any scenario.
What is better: disinformation and nontransparency charges or charges of business with a doubtful bank? This is a rhetorical question. It is worth recalling that Tether has already been claimed on several occasions as to what happens with the cryptocurrency. For example, one year ago they made an uncontrolled number of emissions that increased the cryptocurrencies’ capitalization by more than twofold. The issued tokens were oriented to buy ВТС, thus artificially increasing its price. Then, the investigators found the direct connection between the top management of Tether and the owners of Bitfinex.
And if, at that moment, the representatives of both companies were trying to deny it, then now this connection has quite solid grounds. In the middle of October, the mass media released some information stating that Bitfinex had stopped accepting fiduciary currencies and there had been some problems with the payment behavior of Noble Bank that supposedly maintained the accounts of Bitfinex and Tether. This gave a rise to an assumption that a dark cloud was hovering over the stock house. And if investors weren’t suffering from the bankruptcy of Mt.Gox and BTC-E at the peak of popularity of cryptocurrencies, then Bitfinex that will definitely bring Tether down, may have a serious impact on the capitalization level. Alas, this entire situation makes you think over the transparency, stability and prospects of the whole cryptocurrency market.