The cryptocurrency Tether was founded back in year 2014, was the first platform that enabled tokenization of fiat-backed digital currencies employing the blockchain technology.
As per a study conducted by the University of Texas, a report was published mentioning that USDT fell beneath suspicion of Bitcoin ‘BTC’ price manipulation back in 2017, when the price of the bitcoin waved to new heights of around $20,000 USD. However, as per this report USDT seems to be main suspect in the increased prices of bitcoin.
With several digital currencies experts convinced that Tether is lying concerning its backing assets, however as per Lubin is not sure about this manipulation and the company involved behind it.
Heaforementionedthat based on our analysis,that simplyinvolvedspeaking to a bunchof individualswithin the house,we tend todo believe that ‘USDT’ is backed 1:1 by U.S.dollarsin bank accounts”thoughit’s“still not100%solid in terms of a story, from my perspective.
“…withreference tomarket manipulations, I’mundecidedthat market manipulationsassociated withTether directly, ifthey doexist.There’sbeen an unregulated market set of exchanges thatchangemassive playersto try and dowhatthey requireto try and do, Ideally we’ll geta bithigherregulationof these centralized exchangesat least.”
Late in June this year, a security research firm Freeh Sporkin and Sullivan LLP conducted an unofficial audit of Tether’s accounts in which it was concluded that the cryptocurrency didn’t have enough funds to back its every token in the ratio of 1:1 U.S. dollars.