One of the most controversial crypto coins or as it is more commonly know as stablecoin Tether, had again muddied the crypto waters.
Last Friday 18th of May was a day when Tether issued a new batch of their tokens worth at 250 milion dollars. This move had increased their token amount of USDT in circulation to 2.75 billion dollars.
Tether is a cryptocurrency company that issues a special kind of crypto tokens known as stablecoins. For their coins, the company claims that they are backed at 1:1 ratio by US dollars. There has been a controversy in past attached to this company getting itself criticized for the lack of transparency after they have ended their relationship with the auditing firm Friedman LLP right before a scheduled official audit was conducted.
The public has had a hard time believing the company’s claim that all of their token assets were really backed by US dollars.
Bitfinex the crypto exchange, is a sister company of Tether and has made a public statement threatening with legal action against anyone that will criticize or question the 1:1 backed Tether – USD ratio.
After about 20 minutes after Tether issuing their new amount of tokens the price of Bitcoin have risen by more than 150 dollars and the price of Ethereum for 20 dollars. The crypto community had bashed the company for engaging itself in illegal activities of manipulating the cryptocurrency market with the issue of their token.
But there seems like the Tether stablecoin domination is getting to an end since other companies like Circle which is backed by Goldman Sachs, TrueUSD and Basis have all been developing their own stablecoins.