Tether.to Released It’s Financials, And Things Aren’t Adding Up

Source: Tether.io

On Tuesday January 30th, 2018 Tether.io released a document which they claim is proof of fiat assets backing their controversial crypto currency, USDT. This was in response to a US regulatory agency, the CFTC (Commodity Futures Trading Commission) submitting two subpoenas to both Bitfinex as well as Tether. The subpoenas were issued to find out whether or not Tether has the fiat assets to back the currency. The situation is questionable since no audit has been done, nor has Tether.io proven to hold the assets which supposedly back the currency.

After reading through the financial report posted, it appears that Tether only held roughly $400 million in USD as of September 2017.

With a Tether market cap of over 2 billion dollars, this math seems to fall short. Also there is still no verification that the assets are actually being used to back Tether.



Just look at the spike in increased circulation of Tether toward the end of 2017.

It’s possible that nearly every crypto currency is over-inflated in price at the moment and we could be in for a hard crash. And with 3.2 billion disappearing in hacks and scams, combined with this type of inflationary fraud, could mean a huge downturn in the market, and even worse even more distrust in crypto currencies.

Crypto currencies removed inflation from our finances until Tether came along.

We do however have to consider that the huge explosion in circulated Tether is due to the explosion in the crypto market. Which most likely has a heavy influence in the dramatic increase in Tether. But until these numbers are proven, it is best to remain highly skeptical.

If I held Tether at this point, I would move it back into Bitfinex, and dump it all. We just have to “take their word” that Tether is backed by assets and will be in the future. Crypto currencies were made to remove the concept of trust within financial transactions. Even more important, crypto currencies removed inflation from our assets until Tether came along. And now, it appears we have failed as a community to keep the concepts of trust and inflation out of our assets.

We have failed Satoshi.

Background info on Tether:
Tether is meant to mimic the US Dollar and is pegged to the dollar’s value. Another reason this currency is suspicious is that the CEO of Bitfinex, one of the world’s largest crypto currency exchanges, controls the supply of Tether.

About the author: L3O STUDIOS

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