on a new development by the U.S. Department of Justice to open an investigation into Tether, the parent company behind stablecoin USDT. While the accusations against Tether and its somewhat murky relationship with exchange Bitfinex has been a long-standing black mark on the record of cryptocurrency, more recent inquiries into whether the currency played a role in BTC\u2019s massive bull run last Q4 are just as concerning. <\/span><\/p>\n <\/p>\n
Tether, which has produced $1.81 billion USDT, has had to answer repeated questions over the legitimacy of the 1:1 backing for the stablecoin. While the company claims to hold a U.S. dollar in reserve for every USDT freshly minted, thereby pegging the price at a stable value, investors are still skeptical over the exact nature of Tether\u2019s holding–despite the company switching banks within the last month. Instead of trading at its historic $1 mark, USDT has slipped to $0.98 in the crypto price fall, indicating that investors are still not placing full trust in the currency to safeguard their funds even as the crypto markets continue to plunge. <\/span><\/p>\nAccording to Bloomberg, the investigation into Tether concerns the tangled relationship between USDT, Bitfinex and the timely nature of BTC price pumps, <\/span><\/p>\n <\/p>\n
\nWhile federal prosecutors opened a broad criminal probe into cryptocurrencies months ago, they\u2019ve recently homed in on suspicions that a tangled web involving Bitcoin, Tether and crypto exchange Bitfinex might have been used to illegally move prices, said three people familiar with the matter…Some traders — as well as academics — have alleged that these Tethers are used to buy Bitcoin at crucial moments when the value of the more ubiquitous digital token dips. JL van der Velde, the chief executive officer of Tether Ltd. and Bitfinex, has previously rejected such claims.<\/span><\/i><\/p>\n<\/blockquote>\nWith prices continuing to show shaky stability, investors can only hope that the industry moves towards more positive news and development and puts ongoing controversy in the past.<\/p>\n","protected":false},"excerpt":{"rendered":"
Bitcoin Cash (BCH), Cryptocurrency, Tether (USDT)–On a day where the crypto markets are finally seeing scant amounts of green, after one of the most precipitous drops in valuation to punctuate 2018\u2019s bear cycle, investors still have to contemplate the impact of cryptocurrency\u2019s most controversial projects: Tether and Bitcoin Cash. Bitcoin Cash, which appeared to have spurred some investment life back into the crypto markets in the days leading up to the Nov. 15 hard fork, as eroded the good […]<\/p>\n","protected":false},"author":31,"featured_media":26673,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[800],"tags":[426,5330,3929,1233,6976,4145,3928,83,585,1811,5331,4881,4307],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/26670"}],"collection":[{"href":"https:\/\/ethereumworldnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ethereumworldnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ethereumworldnews.com\/wp-json\/wp\/v2\/users\/31"}],"replies":[{"embeddable":true,"href":"https:\/\/ethereumworldnews.com\/wp-json\/wp\/v2\/comments?post=26670"}],"version-history":[{"count":0,"href":"https:\/\/ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/26670\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ethereumworldnews.com\/wp-json\/wp\/v2\/media\/26673"}],"wp:attachment":[{"href":"https:\/\/ethereumworldnews.com\/wp-json\/wp\/v2\/media?parent=26670"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ethereumworldnews.com\/wp-json\/wp\/v2\/categories?post=26670"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ethereumworldnews.com\/wp-json\/wp\/v2\/tags?post=26670"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}