In October, crypto trading analysts, journalists, investors and traders in the crypto sector were engaged in an intense debate pertaining to USD-backed stablecoin Tether (USDT). During the debate, this group of crypto enthusiasts pondered upon the regulatory state and legitimacy of the asset. Tether or USDT which is commonly referred to as the first stablecoin was launched in 2014.
Citing the lack of regular audits that were promised in Tether’s whitepaper, a large chunk of the cryptocurrency sector has expressed a somewhat negative stance on USDT. However, the billionaire investor, Mike Novogratz mentioned in his statement that Tether is backed by the USD and it is challenging for crypto projects to secure complete audits from major accounting firms.
The crypto trading analysts also discussed that a partial audit of USDT last year disclosed that Tether LLC had held more than $2 billion in its USD bank account, thereby verifying the holdings of the company. Tether LLC is the company that looks after the operation and development of USDT. However, critics claimed that this audit had no significance, as it didn’t include the evaluation of Tether’s liabilities.
Majority of investors seem certain that USDT is fully backed by the USD. But while the probability of the stablecoin being fully backed by the USD is high, it is not feasible to prove this, until audits are released, as reported on CryptoSlate.
When asked about the possibility to redeem USDT based on its 1:1 USD backing, Jesse Powell, crypto exchange Kraken CEO, mentioned in his statement on October 18, that he is not sure whether Tether LLC can process USDT redemptions when the spread between exchanges is high.
In the midst of ongoing speculations in the crypto trading market about Tether’s USDT, on November 14, crypto exchange Bitsane shared an announcement in Dublin that it has officially listed USDT on its public trading platform. With this, Bitsane becomes the very first ever crypto exchange to support an EUR/USDT Tether Trading Pair, as reported on Bitcoin Exchange Guide.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]