Forex and Crypto News

USDT is no longer 100% backed by USD

15:34 14 March /2019

On the official website, Tether has changed the description of the USDT stable coin support.

If earlier, the company stated that the USDT was 100% backed by reserves which 100% included US dollars, now the USDT has become backed by changed “reserves”. These reserves may include not only US currency, but also equivalents, as well as other assets. In addition, reserves that back USDT may include Tether's receivables.

tether_site_new-min.jpg

In June, Tether tried to dispel rumors about the insecurity of their stable tokens with fiat funds, but again without an audit. Freeh Sporkin & Sullivan LLP reported that, according to bank documents, as of June 1, the company held $2.55 billion and the emission was 2.5 billion USDT.

Later, Bloomberg, on the basis of the Tether financial documents, confirmed the support of the USDT with sufficient reserves in the US dollars.

In the comments, Reddit users noted that the USDT is not 100% secured with dollars and can be backed by other cryptoactive assets that flow from Bitfinex. One commentator compared this situation with Bitconnect pyramid.

The Block portal suggested that Tether could change the description of the reserves due to the ongoing investigation by the Commodity Futures Trading Commission (CFTC) regarding the company's operations.

Recall that last year a number of dollar-linked stablecoins were launched, including Paxos Standard (PAX), Gemini Dollar (GUSD) or USDC. For example, the company Circle publishes a monthly report of the auditing firm Grant Thornton LLP, confirming the secure of USDC tokens by fiat currency. TrustToken platform with the accounting company Armanino launches a real-time audit service showing the secure of TrueUSD.

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