According to a Washington-based law firm, the stable coin Tether (USDT) has the necessary reserves to back all USDT in the market. This is a very important information for USDT and the market because just a week ago, a research from the University of Texas, claimed that Tether was used by some exchanges to manipulate Bitcoin’s price.
Tether Has Enough Dollar Reserves
The report has been presented by Freeh, Sporkin & Sullivan LLP brings fresh air to a cryptocurrency that has been highly questioned during the last months. The information has been released by Reuters on June the 20th.
The FSS was able to conclude ‘comprehensive examinations and telephone interviews of key personnel at Tether and its banks.’
The report reads as follows:
“FSS is confident that Tether’s unencumbered assets exceed the balance of fully-backed USD Tethers in circulation as of June 1st, 2018.”
It is important to mention that the report did not give information about the banks where the money could be stored. But the company explains that it did not arrive at any conclusions about Tether’s compliance with regulations around the world.
Some days ago, a research conducted by a professor at the University of Texas, concluded that Bitcoin have been manipulated with Tether. According to John Griffin, every time Bitcoin dropped, Tether has been used to stop the effect at the Bitfinex cryptocurrency exchange.
Apparently, this helped bitcoin sustain a higher price during market drops. Moreover, the professor showed that there was a relation between Tether printings and Bitcoin price stabilization.
Important regulators have been investigating possible market manipulation. The crypto market needs to grow and have more participants to avoid these kind of situations in which the price of a currency can increase 100% – or more – in less than 24 hours.
At the moment of writing this article, Tether is the 11th cryptocurrency by market capitalization with $2.61 billion dollars. Its price is stable and does not fluctuate as other virtual currencies.
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