Independent Ratings Agency Alerts Investors About Dangers of Tether
Another outside observer of the controversial tether cryptocurrency is warning about the dangers it presents for the uninterrupted operation of USDT exchanges. Weiss Ratings is seeking to educate investors on the systematic risk tether introduces to the ecosystem.
Inherent Risks of Blind Trust
"The big issue: There's never been an audit, and the folks behind Tether has been quite shady when asked. They have continuously claimed their tokens are backed 100% by actual dollars, yet they have failed to present any evidence to support this claim. On social media, there appears to be consensus that what Tether is actually doing is running a fractional reserve system. In other words, most observers claim they DO NOT have the dollars to back up all those Tether coins. I tend to agree. It's just too suspicious,” says Weiss analyst.
What Happens When the Feds Stop USDT Printing'
"The consequences of hanky-panky could be far-reaching. What happens if Tether does turn out to be fraudulent' Or what happens if a major government determines that cryptocurrencies like Tether are being used by exchanges to avoid regulations' What if this large source of liquidity suddenly evaporates'”asks. "Conceivably, it could cause exchange failures. It could drive investors to liquidate their positions, causing sharp declines in market prices.”
Should cryptocurrency investors worry about the continued liquidity of USDT exchanges' Tell us what you think in the comments section below.
The post Independent Ratings Agency Alerts Investors About Dangers of Tether appeared first on Bitcoin News.
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