Tether is accused of market manipulation
- The stablecoin’s issuance increased by 400 million USDT.
- The market is divided on what’s going on.
The cryptocurrency community is wary of an issuance of about 400 million USDT. There are doubts that the coin is fully backed by fiat reserves.
“Tether is once again injecting the cryptocurrency markets with nearly $400M of fake money. They’ve recently admitted it’s not backed by dollars, but so-called ‘reserves’. Last time they injected this much fake money, we found out about CFTC subpoenas and the market crashed,” a Twitter user under the nickname Bitfinex’ed wrote
Though this critical view is not shared ny all community members as some traders believe that the issuance might have been caused by a rising demand for the stablecoin.
Earlier this month the experts of the research company DataLight noticed that an average daily trading volume of USDT hit the record of $26.5 billion and surpassed Bitcoin’s trading volumes. According to DataLight analysts, this development put Tether into direct competition with Bitcoin.
In March Tether developers changed the composition of fiat reserves behind the coin. Now it is backed by a basket of assets that includes traditional currency, cash equivalents and other assets as well as receivables from loans made by Tether to third parties,
Author
Tanya Abrosimova
Independent Analyst
