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Ethereum Co-Founder Says Tether Backed By USD

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Joseph Lubin, one of the co-founders of Ethereum, has thrown his weight behind the controversial stable coin of Tether (USDT). In an interview with Yahoo Finance, Lubin elaborated why he believes that USDT is backed by actual US dollars in a one-to-one ratio. He added that:

“Tether’s an interesting project. Based on our analysis, which involves just talking to a bunch of people in the space, we do believe that tethers are backed 1-to-1 by U.S. dollars in bank accounts… With respect to market manipulations, I’m not sure that market manipulations are related to Tether directly, if they do exist.”

Tether Market Manipulation

The market manipulations Joseph Lubin is referring to, are claims by a research paper by faculty at the University of Texas (Austin) stating that USDT is used to prop the value of Bitcoin (BTC) during times of turmoil. The co-authors of the paper, Professor John M. Griffin and Ph.D. Candidate Amin Shams of the same institution, stated that USDTs are minted whenever the value of BTC is declining significantly. The newly minted Tethers are then used to prop the value of BTC in the markets.

The paper goes on to conclude that:

“Our analysis centers on examining potential manipulation of Bitcoin and other major cryptocurrencies. We examine whether the growth of a pegged cryptocurrency, Tether, is primarily driven by investor demand, or is supplied to investors as a scheme to profit from pushing cryptocurrency prices up. By mapping the blockchains of Bitcoin and Tether, we are able to establish that entities associated with the Bitfinex exchange use Tether to purchase Bitcoin when prices are falling. Such price supporting activities are successful, as Bitcoin prices rise following the periods of intervention. These effects are present only after negative returns and periods following the printing of Tether.”

According to Lubin, the manipulation in the crypto markets might stem from the fact that most trading platforms are relatively unregulated when compared to traditional securities exchanges. He would add:

“Ideally we’ll get a little better regulation of those centralized exchanges, at least, and we’ll see less sloshing around in price.”

Ethereum’s Difficulty Bomb Delayed

In other news, Ethereum’s core developers have decided to delay the network’s ‘Difficulty bomb’ by agreeing to include the code for such a change into the upcoming Constantinople fork.

The ETH difficulty bomb refers to the increasing difficulty level of puzzles in the mining algorithm used to reward miners with Ethereum on its blockchain. As the puzzles become more difficult to solve, there is a lag in the production of blocks on the ETH network. This lag will continue to slow down the network resulting in a scenario that has been referred to as an ‘Ice Age’ where rewards will not be based on Proof-of-Work but on Proof-of-Stake.

Per the agreement by the Ethereum core developers posted on Github, the difficulty bomb will be delayed for about 18 months and there will be a reduction in the block rewards with the Constantinople fork. The summary decision stated that:

“Starting with `CNSTNTNPL_FORK_BLKNUM` the client will calculate the difficulty based on a fake block number suggesting the client that the difficulty bomb is adjusting around 6 million blocks later than previously specified with the Homestead fork. Furthermore, block rewards will be adjusted to a base of 2 ETH, uncle and nephew rewards will be adjusted accordingly.”

This decision and plans for a hard fork, further provide hope that the Ethereum core developers will also come to a discussion with regards to the scalability issues evident on the Ethereum network.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Stablecoins Rivalry: Which New Coin will Replace Tether (USDT)?

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After the recent Tether (USDT) incident, a lot of investors started paying more attention to stablecoins. However, they were quite popular long before USDT started losing its value, and a lot of new ones were in development for a while now. These days, the stablecoin invasion is in its full swing, with around 57 coins being around — either already in circulation, or about to enter.

While most crypto investors already know this, we should explain that stablecoins are cryptocurrencies that are backed by another asset. This other asset is often a fiat currency, such as the USD. This is done so that their price would always be the same. with each coin being backed by the same amount, which is usually $1. That way, the coin is able to escape volatility, and ensure stability, hence the name.

While there were numerous stablecoins in circulation already, the one that made them known and popular was Tether (USDT). This is a coin issued by the Tether company, which claims that it can back each coin in circulation with 1 USD. However, since the company failed to provide proof that it actually has enough money to do so, the coin lost its credibility, and investors started dumping it.

This has left an empty spot in the space, and numerous stablecoins rushed in to fill the gap left by Tether. Today, we will review some of these coins.

1. Tiberius Coin…

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5 Reasons Why BAT is A Good Investment

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In their search for the next great investment opportunity, people often tend to run into Basic Attention Token (BAT). A lot of investors have developed a significant interest in the coin, and are wondering if things are truly as good as they seem.

With so many scams and fake coins out there, as well as bad investments that seem good at first, it is a good idea to be skeptical. However, in the case of BAT, many agree that the coin is an excellent investment that should not be missed or overlooked. So, today, we will discuss why this is, and why you should add BAT to your investment portfolio.

1. The project’s goal

BAT has a goal to solve a problem that all of us are already very familiar with, and that is the issue of online ads. For a lot of people, ads are annoying, often irrelevant, and they tend to pop up in all the wrong moments. No to mention that they are intrusive, advertisers steal or buy your private data in order to process it and target you with more appropriate ads, and more.

Most people choose to deal with this by installing ad block extensions. However, what if there is a better way to go around it?

This is where BAT comes in. The project uses its technology to solve this problem by blocking ads unless users decide to interact with them by…

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How and when Electroneum (ETN) mass adoption will catch fire

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Before we talk about how Electroneum is thriving towards mass adoption, let’s take on some basics. What is the meaning of “mass adoption” and what cryptocurrencies could really achieve it? The answer to these two questions will ultimately determine the destiny of the cryptoverse.

Sooner or later some tokens will become useful (and used by) a lot of people in the real world. That will create demand for those tokens and that demand will bring its value up. It will be the point at which the crypto market becomes mature, one that answers to real economic forces (such as supply and demand) instead of being a toy for speculators as it still is today.

So let’s start at the beginning. Mass adoption means that, given any kind of technology, product or commodity, at least seven out of ten people know what it and what they can do with it. This definition doesn’t take into account if they actually use it, only if they know about it. Think about Facebook, for instance. Not everybody you know has an active account there.

But chances are almost everybody you know understands what it is and that they could start using it anytime they wanted (if they’re not using it already) at a rate higher than 70%. Maybe a more explicit example is coffee. The percentage of coffee drinkers in the US is about 83% which is enough to ensure it’s mass-adopted. And everybody…

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