This time, the attention of the cryptocommunity was attracted be issuing of about 400 mill USDT. Coin support by fiat reserves is again in question.
Over the week, Tether team sharply increased offering of USDT, which is why it was again accused of manipulating cryptomarket. This increase in the coins noticed critic of the company under the nickname Bitfinexed.
“Tether again entered almost $400 mill of fake money into cryptomarket. They recently admitted that tokens are provided not by dollars, but by so-called “reserves”. Last time they created so much counterfeit money, it ended up in CFTC subpoenas, and the market collapsed,” – he stated in his accusation Twitter post.
The post went under heavy discussion right away, not everyone agreed with his opinion. As the user under the nickname Dan G suggested that increased demand for stablecoin among investors could be the reason of issuing that many new coins.
At the end of March this year, analysts of DataLight fixed a record daily amount of transactions in USDT and compared it to same indicator for BTC. And according to their data, Tether’s record trading volumes indicate on its direct competition with BTC.
However week before that it became known that the developers of the stablecoin changed the rules of the game. So now the coin does not have to be fully backed by real US dollars. Each USDT is backed up by “reserves, which include traditional currency and cash equivalents, as well as other assets and upcoming loan proceeds that were provided to third parties.”