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Tether Controversies Continue: Does the World’s Largest Stablecoin Have a Future?

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Tether

The crypto market crash of 2018 had brought a lot of troubles for the crypto world, and very difficult time, even for the best and strongest of projects. However, this was also a moment when stablecoins got their chance to shine. Due to the fact that they are pegged to other assets of value, such as fiat currencies, other cryptos, and alike — they were able to keep their prices stable and avoid volatility.

Among them, Tether (USDT) emerged as the most popular and largest of stablecoins. However, the coin also had a misfortune of getting involved in one controversy after another. As a result, many have started disregarding the coin, but even so, it still remains one of the largest cryptocurrencies, currently with $2.78 billion-large market cap.

However, the question of how many more scandals will USDT get involved with remains.

Tether scandals keep emerging

The first big issue with Tether came after it was noticed that it avoids audits which would confirm that all of its coins are backed by an appropriate amount of USD. Scandals continued throughout 2018, and even in 2019. One of the most recent ones came when the project updated its terms and conditions in March of this year. The problem was that it failed to make the changes known to the public.

If any traditional PLC did this, it would face massive consequences, including regulatory sanctions, as well as governmental, media, and even investor uproar. However, when it comes to Tether, the situation is more complex.

The new update claims that reserves which provide Tether coins with the value might include assets other than fiat currencies. Many have taken this as a discreet confirmation that Tether truly does not have enough funds to actually back its coins with $1 per coin.

Another, more recent event, got Tether involved in another controversy when one of the major exchanges — Bitfinex — used $850 million in USDT to cover its own losses. This was a major scandal due to the fact that the used coins were, supposedly, owned by investors, and not the exchange itself. What’s more, it appears that both, Tether and Bitfinex are operated by the same firm — iFinex Inc., which is registered with the British Virgin Islands.

This streak of scandals reflects badly not only on Tether but also on the entire crypto industry. What’s more, it puts the industry in jeopardy at the time when a stable project that would act as a true store of value is highly necessary. Meanwhile, Tether has still not provided a clear insight into its funds, not even to a reputable third party which would be able to confirm the state of things to investors.

Tether alternatives proving their worth

With Tether getting involved in one scandal after another, a number of other stablecoins emerged, trying to offer a more decent service. One example is TrueUSD, which also claims to be completely backed by USD. The difference between TUSD and USDT is that TrueUSD allowed insight into its accounts, thus confirming that it is telling the truth.

The company behind the audit, Cohen & Company Accounting Firm, confirmed that TrueUSD has an appropriate amount to cover its circulating supply. This is also not the only stablecoin that was able to confirm its value. diamDEXX, also known as DIAM, also offers stablecoins, although its tokens are backed by diamonds.

This is a popular project as diamonds have been acting as a store of value for a long time, and they represent a trusted asset that can protect and secure wealth. As mentioned, the company is also fully audited by IDEX, a trusted diamond exchange with a nearly two decades worth of reputable history. The company’s CEO, Jeremy Dahan, stated that seeing investors get disappointed in crypto is becoming a common occurrence.

He mentioned that Tether’s scandals caused investors to start speculating on its price when it should be a stable store of value. With a situation like that, Tether appears to be moving away from what it means to be a stablecoin.

While the stablecoins, in general, are a good thing for the crypto world — a trend which is likely to remain for as long as cryptos remain volatile — the same cannot be said about Tether. Stablecoins need to be transparent, even more so than regular cryptocurrencies. The absolute minimum requirement would be that they are audited by a trusted third party which would confirm that their value is real. Without that, they might as well be a scam.

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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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Altcoins

DeFi Wizard Raises $750k from Blockchain Investment Bigshots, to Simplify Multi-chain DeFi Legos

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Bengaluru,, India, 24th February, 2021, // ChainWire //

In order to give shape to their ‘one-click DeFi contracts creation’ dream, Defi Wizard has raised a total of $750,000 from X21 Digital, AU21 Capital, Amsterdam-based TRG Capital, DeltaHub Capital, NGC Ventures, and ExNetwork.

Speaking on latest development Defi wizard founder and CEO, Anand Kamath said: 

“It gives us immense pleasure to announce that our platform, DeFi Wizard has attracted the attention of leading blockchain investors and funds.”

DeFi Wizard aims to help cryptocurrency companies and businesses seamlessly create digital assets, without any hassles, with the objective of becoming an all-in-one token creation platform. 

Investment Usage

This recently concluded fundraising round is an important milestone for Defi Wizard. It will fuel the development of the platform along with operations/maintenance.

Other ways in which Defi wizard will receive assistance is with liquidity bootstrapping for Uniswap listing, alongwith added global and regional promotional efforts to generate awareness for the platform. 

About Defi Wizard

Defi wizard is a dashboard for building DeFi (decentralized finance) smart contracts with a few clicks. It offers real-time programmer analytics and allows users to create smart contracts for ERC20 / BEP20 / EDST, staking, yield farming, governance, cross-chain bridge, gasless relayer baked in.

As per the latest statistics, more than five projects are already using DeFi Wizard’s staking services and more than $100M AUM has been locked through the smart contracts generated through the…

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Altcoins

99Bitcoins takes over the “Dead Coins” project to become the cryptocurrency undertaker

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Singapore, Singapore, 17th February, 2021, // ChainWire //

99Bitcoins, an educational website that maintains a list of Bitcoin obituaries made by the media, has taken over the Dead Coins project as well. This move effectively crowns 99Bitcoins as “The undertaker of the cryptoverse”.

Deadcoins.com was established in late 2017 to document the death of thousands of altcoins that popped up during the cryptocurrency mania of that time. The idea was simple – create a list of coins that have ceased to exist after the hype died down.

A coin can become “dead” due to a variety of reasons such as its development being halted, having no one that uses or trades it, being exposed as a scam and more. While the project was initially maintained only by its founders, it was later outsourced to the cryptocurrency community which was allowed to add their own dead coins.

“I think the dead coins project is a brilliant idea that needs a bit of polishing” says Ofir Beigel, owner and founder of 99Bitcoins. “The fact that anyone can add a dead coin themselves made the list of coins very inaccurate. We’ve spent days going through the complete list and sifted out all of the coins that were buried alive, so to speak. For example, Bitcoin, Tron, Dogecoin and Tether are just some of the coins that were listed when we took…

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Altcoins

99Bitcoins takes over the “Dead Coins” project to become the cryptocurrency undertaker

Published

on

Singapore, Singapore, 17th February, 2021, // ChainWire //

99Bitcoins, an educational website that maintains a list of Bitcoin obituaries made by the media, has taken over the Dead Coins project as well. This move effectively crowns 99Bitcoins as “The undertaker of the cryptoverse”.

Deadcoins.com was established in late 2017 to document the death of thousands of altcoins that popped up during the cryptocurrency mania of that time. The idea was simple – create a list of coins that have ceased to exist after the hype died down.

A coin can become “dead” due to a variety of reasons such as its development being halted, having no one that uses or trades it, being exposed as a scam and more. While the project was initially maintained only by its founders, it was later outsourced to the cryptocurrency community which was allowed to add their own dead coins.

“I think the dead coins project is a brilliant idea that needs a bit of polishing” says Ofir Beigel, owner and founder of 99Bitcoins. “The fact that anyone can add a dead coin themselves made the list of coins very inaccurate. We’ve spent days going through the complete list and sifted out all of the coins that were buried alive, so to speak. For example, Bitcoin, Tron, Dogecoin and Tether are just some of the coins that were listed when we took…

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