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.
He aforementioned that based on our analysis, that simply involved speaking to a bunch of individuals within the house, we tend to do believe that ‘USDT’ is backed 1:1 by U.S. dollars in bank accounts” though it’s “still not 100% solid in terms of a story, from my perspective.
“…with reference to market manipulations, I’m undecided that market manipulations associated with Tether directly, if they do exist. There’s been an unregulated market set of exchanges that change massive players to try and do what they require to try and do, Ideally we’ll get a bit higher regulation of these centralized exchanges at 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.