What is Tether USDT (Stable Coin)
Tether USDT which was initially known as “Realcoin” is a cryptocurrency which was launched back in October of 2014 by Brock Pierce, Reeve Collins, and Craig Sellars. Tether limited the firm behind Tether USDT claims that each and every token is backed up by a dollar in a reserve. There have been a lot of controversial opinions about Tether USDT.
One of the leading reasons for these controversial opinions is that the world’s second most traded cryptocurrency failed to show the audit (which was initially promised by the company) of the reserves. Moreover, Tether USDT has a shady link with Bitfinex exchange, and it is known for manipulating the price of Bitcoin. Critics also say that the firm hasn’t had a long-term relationship with any bank.
Although the price of Tether USDT has been somewhere between $0.98 to $1 for some time now, just a week back the price took a sharp drop and came down at as low as $0.92.
Tether (USDT) Price Today – USDT / USD
Price 24H (%) -0.18%
Billionaire Mike Novogratz comments on Tether USDT
Mike Novogratz is a billionaire investor who has invested over $15 million in cryptocurrency(combined with Goldman Sachs). Goldman Sachs is also reportedly planning on launching its own cryptocurrency. Novogratz started his finance career with a salesman job at Goldman Sachs, and he then joined the investment firm Fortress Investments.
He was the hedge fund manager at Fortress. He became a billionaire in early 2007 and was featured as a billionaire on Forbes in not only 2007 but also 2008.
He currently is the CEO Galaxy Digital which is an investment firm specializing in cryptocurrency investments. Tether USDT which is a stable coin got a boost when at a conference the billionaire said: “The concept of stable coins make sense.” However, he also highlighted the negative areas of Tether USDT.
He said that while the world’s 8th largest cryptocurrency (by market capitalization) has managed to be stable from the beginning, it has had controversies. He basically addressed the “every tether is backed up by a dollar” controversy saying that the company hasn’t been able to prove the legitimacy of the reserves.
Tether USDT has about $2.13 billion worth of tether coins, and if the coins are really backed up by a dollar, then that’s a lot of money which Tether limited has not shown yet. He also said that although there are no signs of any forgery or fraud after several investigations, there aren’t any proofs of the dollar backing either.
The billionaire investor added: “I think Tether didn’t do a great job in terms of creating transparency.”
Mike suggested that instead of printing more Tether USDT, the firm should put some effort into clearing the controversies around the cryptocurrency in order to keep the price stable at $1. If they fail to clear the controversies, investors may lose confidence in the cryptocurrency and which can result in the “stable coin” becoming very unstable like Bitcoin.
Although Tether isn’t really very investable since the price is to be stable at $1, the firm really should first prove its validity so that it can be a trusted coin in the long-term.