KB Topic Tether

Tether (USDT) is one of the first and most popular stablecoins available.

The main idea behind Tether is to peg it 1:1 to the valuation of the US Dollar. For this, there must be 1:1 Tether:USD reserves in cash equivalents, so that every time a Tether is bought or sold, a USD can also be correspondingly sold or bought in order to maintain the 1:1 ratio.

Due to the nature of the 1:1 equivalence with USD, Tether is not really decentralized, but depends on a central reserve of US Dollars in order to maintain its value.

Based on Cryptocurrency Knowledge Base Topic tether
Tether is backed by Bitcoin converted to U$, not by actual US Dollars
A lot of the controversy surrounding the Tether cryptocurrency seems to focus on whether it is fully backed by US Dollar funds or not. Several relevant questions have been posed in this respect, such as why investors would keep U$ 2.5 billion (as of May 2018) in cash deposited as reserves for Tether, with little or no return, when there are much better and safer investments available? A $2.5 billion fund manager would be a guest of honor at any bank in New York or London and they'd surely be offered top not...

Understand how Tether cryptocurrency works
How does the Tether cryptocurrency work? How come its value is pegged to U$ 1? In this article we talk briefly about the curious case of a cryptocurrency that was created, from the start, to be pegged to the US Dollar fiat currency. Many cryptocurrencies had the purpose of representing some real world value. There was a crypto for gold, silver and bronze for example. But these currencies seemed to miss the point, at least according to cryptocurrency purists: gold isn't decentralized, it's a physical good...

Japan came Kraken down on Tether
Seven score and three years ago Kraken launched in Japan. And just about two days ago Japanese authorities shut down Kraken's JPY accounts. What happened? Tether happened. Here is a screenshot posted by Dog Bunny on Reddit: Some experts had warned Kraken before. Perhaps if they'd listened, they'd be saying arigato instead of sayonara. Japanese banks close Krakens account. Kraken disables Tether for Japanese citizens. Maybe they would not have lost their bank if they took my advice and d...

Quantitative Easing: The Tether USDT of legacy fiat markets
For years now the legacy pre-crypto financial markets have been inflated by the worldwide network of central banks. This would have been unthinkable 20 years ago, but somehow it became OK when it was deviced by the then-number-2 world economy. The name of the beast is "Quantitative Easing", or QE for short. QE was invented to artificially inflate the financial markets of Japan, around 16 years ago. The idea is very simple and those familiar with Tether will find it extremely familiar. But first, some ...

Tether reserves to be tested during the market downturn
When both Bitcoin and altcoins are going down, it usually means cryptos are being traded for fiat currency. Right? Almost. There's a curious cryptocurrency called Tether (USDT), which supposedly represents one coin for each US Dollar (USD) deposited in accounts in Asia. Right now Tether is one of the few currencies which gained value against Bitcoin, which means investors are moving their BTC to USDT. Hundreds of millions of U$ have been issued in Tether, a fact which has raised questions from several...

Tether | Tether Coin | USDT to USD | Tether USDT | Info
USDT is a cryptocurrency asset issued on the Bitcoin blockchain via the Omni Layer Protocol. Each USDT unit is backed by a U.S Dollar held in the reserves of the Tether Limited and can be redeemed through the Tether Platform. USDT can be transferred, stored, spent, just like bitcoins or any other cryptocurrency. USDT and other Tether currencies were created to facilitate the transfer of national currencies, to provide users with a stable alternative to Bitcoin and to provide an alternative for exchange and wallet audits which are currently unreliable. USDT provides an alternative to Proof of Solvency methods by introducing a Proof of Reserves Process. In the Tether Proof of Reserves system, the amount of USDT in circulations can be easily checked on the Bitcoin blockchain via the tools provided at Omnichest.info, while the corresponding total amount of USD held reserves is proved by publishing the bank balance and undergoing periodic audits by professionals.

Is a Tether bank run underway - The Block
Market observers are speculating about a run on Tether as its price is nearing $0.92 on Kraken after trading for less than $0.99 for a week. If the situation continues to degrade, the collapse of the so-called stablecoin could follow, industry insiders say. And the risk that poses to the value of other cryptocurrencies, a concern expressed about Tether for some time, could come to fruition. Tether plays an important role in the cryptocurrency ecosystem: it makes up about 98% of all the stablecoin volumes and accounts for approximately 92% of all stablecoins in circulation. Tether was created on a simple premise of issuing tokens that will always be redeemable for U.S. dollars. The company, affiliated with Bitfinex, promises to hold the corresponding reserves in bank accounts subject to frequent professional audits. In January, Tether dissolved its relationship with audit firm Friedman LLP and in July, Tether released a report by a law firm Freeh, Sporkin & Sullivan LLP attesting to USD reserves held on just a single day. Tether's general counsel told Bloomberg: The bottom line is an audit cannot be obtained. The big four firms are anathema to that level of risk.

Exchange volume for Tether sees all-time high - The Block
Tether (USDT), the controversial stablecoin issued by Tether Limited, has experienced its highest exchange volume since first being issued in 2015. According to data from CoinMetrics.io, on December 20, 2018, USDT had over $6.9B in exchange volume. The increase in exchange volume may hint at a return in trader confidence for Tether. On Tuesday, Bloomberg published a report suggesting that Tether Limited has the necessary USD collateral to back up its stablecoin. In November, Tether Limited reopened account verification and direct fiat redemption features for its traders.  Bloomberg report suggests Tether has the necessary fiat collateral

Tether (USDT) ICO information and rating | TrackICO
Glyff (GLY) 1 day, 23 hours ago We are building a next-generation decentralized platform ... Grabity (GBT) 2 days, 8 hours ago "Grabity provides an innovative Blockchain platform for g... KIZUNA GLOBAL TOKEN (KGT) 2 days, 9 hours ago "KIZUNA GLOBAL TOKEN will be released on the basis of Pol... AURIcoin is a cryptocurrency that starts the new world ec... Meritocratic Lab. (MRT) 2 days, 9 hours ago Meritocratic Lab. born from the desire to spread a new co... A method to maintain a one­-to­-one reserve ratio between a cryptocurrency token, called tethers, and its associated real­world asset, fiat currency. This method uses the Bitcoin blockchain, Proof of Reserves, and other audit methods to prove that issued tokens are fully backed and reserved at all times
December 24, 2018 11:26 AM

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Bitcoin Manipulation: U
The U.S Department of Justice (DOJ) has set its sights on Bitfinex and Tether Ltd in its probe into last year's bitcoin price surge. The DOJ is inquiring into the possibility of market manipulation, involving the use of Tether's stablecoin to drive up the price of Bitcoin. According to a Bloomberg report, the DOJ is inquiring whether Tether and Bitfinex engaged in illicit trading activities aimed at driving up the price of Bitcoin last year.  This DOJ probe is in addition to an on-going inquiry by CFTC into the activities of Tether Ltd and Bitfinex. The two government bodies will now commence a coordinated investigation into both cryptocurrency firms.

USD-Backed Crypto Tether Re-Enables Direct Withdrawals of Fiat
Following an announcement from Bitfinex yesterday regarding their newfound neutrality to tether (USDT) and intent to use other stablecoins in addition to USDT, crypto firm Tether has revived its former business model of enabling 1:1 redemption of USDT for USD on its own platform. Now, thanks to stronger banking as a result of our new relationship with Deltec, Tether is able to return to its original vision of having a wallet for creating and redeeming directly on its own platform without having to rely on a third party. This update allows the immediate withdrawal of Tether to fiat (1:1), with the ability to acquire coming soon.
November 28, 2018 9:35 PM

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www.ccn.com

DoJ Bitcoin Manipulation Probe Homes in on Tether and Bitfinex | NewsBTC
-Bitcoin news, price, information & analysis Tether Burns Half a Billion USDT Coins in an Act of RedemptionAn ongoing criminal probe into potential Bitcoin price manipulation conducted by the U.S. Department of Justice has begun to take a closer look at how Tether and crypto exchange Bitfinex may have played a role in Bitcoin's parabolic rise in late December. Back in May of this year, the United States Justice Department (DoJ) in collaboration with the Commodity Futures Trading Commission (CFTC) launched a criminal probe into whether or not crypto traders were manipulating the price of Bitcoin.

Tether Price Analysis: Stablecoin Tether [USDT] Fails to Remain Pegged to USD
USD Tether (USDT) technical analysis for 13th November 2018. USDT has begun to fall again. The stablecoin which is meant to remain pegged to the USD recently crashed to 0.85 against the USD and over the past week has begun to decline again. We analyze potential reasons and what may happen going forward. The widely used and controversial stablecoin, USD Tether (USDT), is struggling to remain pegged to the USD. A few weeks ago, USDT crashed against the USD and reached a low of 0.85. Many exchanges price their assets against USDT, and this event resulted in the prices of these exchanges trading at a premium.
November 13, 2018 1:09 PM

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blokt.com

Brazil: Tether's New Banking Partner Deltec Suspected of Accepting Laundered Funds
Tethers new Bahamas-based banking partner is possibly involved in $25 million money laundering case being investigated by federal prosecutors in Sao Paulo. Brazilian federal prosecutors investigate whether $25 million laundered by a local official could involve the accounts of Tether's new banking partner, Deltec Brazilian law enforcement has solicited the help of Bahamian authorities to investigate suspicious transactions to Deltec Bank & Trust the recently-announced new banking partner of controversial stablecoin Tether (USDT) major Brazilian newspaper O Globo reports Nov. 6. As per the report, the Federal Public Prosecutor's Office in São Paulo is on the trail of Paulo Vieira de Souza, a former director of the São Paulo road infrastructure company DERSA. De Souza is currently being prosecuted for bribery in the infamous Odebrecht case, characterized by the U.S. government as the largest foreign bribery case in history.

Tether [USDT]'s 'lack of conspiracy' veil drops after partnership with Deltec Bank and Trust Limited - AMBCrypto
Nouriel Roubini takes hit on Bitcoin [BTC] and others; focuses on 4,800 pump and dump schemes Bitcoin [BTC] Futures Contracts get a green signal from the regulatory authorities Bitfinex announces margin trading for Tether [USDT] with USD pair SEC has lost its first legal battle in its unlawful quest against cryptocurrencies, says John McAfee XRP/USD Technical Analysis: Red clouds hover over investor sentiment SEC has lost its first legal battle in its unlawful quest against cryptocurrencies, says John McAfee Bitcoin [BTC] proponent Mike Novogratz: I don't think we're going to decentralize the whole world
November 02, 2018 9:00 AM

Discussion
ambcrypto.com

59% of Polled Investors Don't Believe Tether is Fully Backed by USD
There are 2 things we can say for sure about Tether (USDT). One, it's the most popular stablecoin on the cryptocurrency market by far, being the 8th largest cryptocurrency by market cap and boasting the second highest daily trading volumes of any cryptocurrency, just after Bitcoin. And two, it's one of the most controversial cryptocurrencies to ever exist. In fact, many people in the crypto community have become familiar with the term The Great Tether Controversy. This refers to the fact that many have become suspicious that, while Tether claims they back every single USDT coin with $1 USD, that they actually only hold a small fraction of the dollars that they claim they hold.

Tether Floods Into Kraken Exchange, Where Crypto Traders Can Get Dollars - CoinDesk
Tether (USDT) tokens are flooding into a wallet address controlled by the Kraken exchange, one of the few places where the troubled stablecoin can be converted into U.S. dollars. The exchange's wallet balance stands at nearly 47.8 million USDT at the time of writing, making it the eighth-most valuable wallet holding this asset, according to the Tether Rich List. Contrast that to the situation less than two weeks ago, on Oct. 7, when Kraken's tether wallet ranked much lower 22nd place and held less than half its current balance: 21.6 million USDT. Archived versions of the rich list show the wallet balance fluctuating between around 10 million and 24 million USDT in the period from late December 2017 to early October.

Bloomberg: $500 million in Tether (USDT) Has Made No Impact on Bitcoin (BTC) Price - Ethereum World News
Bitcoin (BTC), Tether (USDT)Despite Tether (USDT) printing over half a billion dollars worth of new coinage throughout the month of August, financial news outlet Bloomberg reports the move has had little to no impact upon the crypto markets. While the company behind the most popular stablecoin cryptocurrency, now ranked 8th in total market capitalization with $2.84 billion in circulation, has been the target of numerous investigations, particularly those pertaining to the assets backing the coin, August's massive influx of new tethers is apparently not swaying the crypto markets. Despite adding an additional $500 million worth to the total market capitalization, a move that has in the past brought accusations of Tether and its partners artificially propping up the price of the industry, Bloomberg reports that the link between new USDT hitting exchanges and an increasing Bitcoin price has eroded over the past year. Whether because of the prolonged bear cycle of 2018, which is already drawing attention for its investor fatigue, or a new market force at work, Tether no longer has the same impact as in the past.

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