Tether Stablecoin is fully backed again

Tether Stablecoin is fully backed again

A flawed paper was introduced by John Griffin and Amin Shams claiming a single address on the Bitfinex exchange was responsible for operating the bitcoin market in 2017 and the version of which then updated in 2018. USDT Tokens, is by Tether, are now fully backed by Tether’s reserves. The updated paper is a watered-down and embarrassing walk-back of the first version.

There is a promise from the company of an audit of stablecoin reserves and produced a third-party report saying it likely had more funds than outstanding tokens and also had a bank write a letter vouching for its holdings. Till April 2019, USDT was backed by cash and cash equivalents illustrating 74 percent of the current outstanding tethers.

Tether held $2.1 billion in assets with 2.8 billion USDT tokens on the Omni blockchain. Another source confirmed that the company currently holds more than $4.6 billion in total assets. Their reserves incorporate traditional currency, cash equivalents, other assets and receivables from loans made by Tether to third parties. They do not share the asset mix.

Deficit in Perception

In the paper there is a fundamental deficit in perception seen in authors of the cryptocurrency marketplace. The analysis of the paper for its single largest player on Bitfinex found that the 1 percent, 5 percent and 10 percent of hours with the highest lagged flow of Tether by this one player are associated with 55 percent, 67.2 percent and 79.2 percent of bitcoin’s price increases over last year. The paper is basically failure to establish a valid sequence of events for the claimed manipulation. The pattern of trading could be consistent with the market purchase of Tethers. And Possession of data isn’t held disputing that Tether has enough reserves to back up Tether token issuances in circulation. However there is yet doubt that Tether is fully backed that is being denied by the cryptocurrency exchanges.

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