Tether (USDT) is a scandalous dollar in the world of digital coins

Mass tokenization has affected not only business, but also fiat funds. Now the field of cryptocurrencies does not need green papers, because it has its own dollar that exists in the blockchain plane. What is a cryptodollar and is it really a useful cryptocurrency - everything is detailed in this article.

Why do cryptodollars and what does not fit fiat bucks?

The idea to create a cryptodollar existed for more than one year and, alternately, the replacement of the Fiat was called one crypto currency, then another. It would continue to this day, but Tether Limited moved from words to deeds and gave the world the very cryptodollar that everyone has been looking for. But why did the crypto community need this step and what did the American currency do?

Working with fiat funds, all participants in the process have to obey current legislation. This is taxation and financial monitoring, which watches closely, no one there does not launder money online. Currency Exchange, accepting dollars, must introduce strict verification of customers, users at any time should be ready to answer where they have money from. This causes a lot of inconvenience for all parties.

The appearance of cryptodollar would change the course of events:

• The world of the Crypto-currency would have received a stable currency, which would not have jumped back and forth from bitcoin maneuvers like other altcoys.
• There would be no need to report to state structures and pay taxes.
• The exchanges could significantly simplify the process of cooperation with customers.
• Users, in turn, would have the freedom of action and could operate with any amount, without fear of getting charged with money laundering.

Cryptodollar would solve a lot of problems and would become a salvation for the whole crypto community. But has it really happened?

Tether - the dollar in the world криптовалют

In 2015, Tether Limited introduced a new crypto currency, or rather a payment token, called Tether (USDT). Due to its technological features, this was not a super-unique payment system, but it still had some important feature. The new cryptodollar differed from the others in that it was provided with real dollars.

It was an unprecedented case, because if some coins were something reinforced, then certainly not the main currency of all times and peoples. The creators of the project boldly stated that each emitted coin is backed up by the dollar on the company's special accounts. By the way, these accounts do exist and, until recently, they were regularly checked by independent audit companies.

One of the main features of Tether is that the crypto currency has unlimited emissions. As soon as dollars get on the special account, new tokens are minted and their number has already reached 2,7 billion! Therefore, it is not at all surprising that at the cost of one USDT in the 1 area$, the market capitalization has quickly grown and the coin has reached 8 places in the rating of Crypto-currency by capitalization. The young project quickly pushed in this list more experienced and technologically advanced crypto-currencies and, it seems, is not going to give up positions.

Scandals around USDT

The advantages of cryptocurrencies and fiat funds have come together in one payment method called Tether. It would seem that such a coin should have immediately attracted the interest of ordinary people - it attracted him. USDT It is quoted on almost every popular exchange and users are happy to store funds in a stable crypto currency. But along with this, there was another interest - and did Tether Limited put into the special account billions of dollars with which tokens are secured?

Assurance in 2.7 $ bn.

The virtual dollar, therefore, is related to the US national currency, which, according to the developers, is provided with real banknotes. They are supposedly stored on special accounts and in case the user displays them offline USDT, then from these very accounts he gets USD. Until a certain time, the situation with reserves really corresponded to reality and auditors confirmed it.

But suddenly on Tether hackers hawked, which tried to steal some of the money from the company's accounts (31 $ million). This was the reason that work with auditors, for security reasons, was discontinued, and nothing more is known about the company's reserves. And right now, when the audit is not carried out and the information is not disclosed, Tether actively coins tokens - hundreds of millions of tokens at a time.

The culmination was that the organizers themselves said that the amount of collateral is not complete, and in general, the coin rate is not tied to the dollar at all. At the moment, litigation is underway, whether billions of tokens are actually provided with something. This whole situation raises a lot of suspicions - has the Tether robbery become a good reason to hide the real state of affairs of the company?

Tether connection with Bitfinex

2017 year was for Tether peak, because at this time the biggest scandal erupted. A large German publication conducted an investigation, as a result of which it made public a number of interesting facts about the activities of offshore companies and accounts in the "gray zone" of individuals. Tether Limited was among the exposures, because it turned out that the project organizers are the management of Bitfinex's crypto-exchange.

Similar conjectures were expressed earlier, but this time they received documentary confirmation. But the leadership of Tether disowned all attacks and stated that this is all a fiction, who such Bitfinex do not know and do not have a relationship with it. The exchange also did not keep silent and even promised to sue for anonymous slander, but it seems that this business is sewn with white threads and everything is clear:

• Presented are real documents confirming that the exchange and Tether are subsidiaries registered in the same name.
• It was on Bitfinex that the cryptodollar was added first.
• Bitfinex and Tether are seen in a number of machinations during the trading process.

There is a version that Bitfinex's situation is deplorable and USDT massively printed, in order to delay the bankruptcy of the exchange. There is information that real money with Bitfinex has long been on offshore accounts, and instead of dollars, cryptodollar is actively used. This fully explains why the project struck 700 million tokens for January 2018 (for comparison, the US government this month released an order of less dollars - 500 $ million).

Issue of USDT tokens during Bitcoin jumps

It was noted more than once that during the fall Bitcoin from somewhere a new large portion of Tether is taken, and with this money someone is seriously zatarivaetsya cheapened kriptovalyutoy. This leads to the next pampa cue ball - there is even a statistic according to which, up to half of the cases of bitcoin rise in price occurs precisely because of these purchases. During 2 hours after another large issue of a token, very often massive transactions occur between USDT и BTC.

On a simple coincidence, this is not very similar, it seems that someone not only earns a good beat on bitcoins, but also influences his course.

Can Tether be a bench and what can it lead to?

The only stable crypto currency, tied to the fiat, today is a success and is listed on many exchanges. Many users in it keep their money - the coin is stable, why be afraid of something? But in fact, there is a possibility that there is something to be afraid of. For example, the fact that Tether is scam project.

Initially, the coin was announced as being provided with a dollar, later the project management admitted that if users decided to withdraw all the tokens, then there would not be enough dollars for bills. What does it mean? Are we offered a pacifier, which differs from other coins only in uncontrolled coinage?

Let's not make any conclusions about whether the cryptodollar is liquidated and whether it really is worth something. Just for a minute think about what will happen if all of us suddenly start massively withdrawing Tether and it turns out that there are not enough real dollars for everyone. It is very likely that the discrediting of always a stable crypto currency will cast a big shadow on the cryptornics, and may significantly crash it. Therefore, if Tether turns out to be a scam, the problems will begin not only among ordinary users and exchanges, but also in the entire crypto industry as a whole.