Tether; The coin that can destroy the crypto

Concerns about another threat in the cryptocurrency market are growing.

Tether; The coin that can destroy the crypto

The world of stable coins is still dominated by two major milestones, the tether, and the US dollar. Tester accounts for more than 60% of his current $100 billion in fixed income. [Photo by Shutterstock].

San Francisco - cryptocurrency will fall. The so-called stable deviation disappears within a few days. The newly created Crypto Bank has stopped licensing. Investors have financial problems.

The cryptocurrency industry is grappling with the worst of expectations right now, but the worst is yet to come.

There is another danger in the cryptocurrency market. Tester, one of the most under-researched industries, is under increasing pressure from regulators, investors, economists,, and a growing skeptical group.

"Tetter is really a cryptocurrency ecosystem," said Hilary Allen, a finance expert at the US university. "If he leaves, his whole face will fall."

Tate is a major distributor of Statcoins, a type of crypto that trades fixed assets like the US dollar. Unlike traditional cryptocurrencies like bitcoin and ether, they are highly volatile and volatile currencies, usually designed to maintain a constant value of one dollar, and lend themselves well to currency or other financial techniques. This consistency allows cryptocurrency traders to secure and lock out a lien without having to rely on banks or other financial institutions.

However, the name of most of these coins is consistent. When the cryptocurrency fell last month, part of the crash was due to TerraUSD, a volatile $1 coin called Luno, catching its sister Cryptop. With the fall of Luna, TerraUSD collapsed and created a "death chain" that covered the broader market.

On the other hand, Tester argues that stablecoins using cash and other traditional assets make the stock important to the crypto market. In theory, anyone who wants to exchange their ballot for US dollars can do so quickly and easily.

However, the company's financial statements reveal that large investors are tied to an unexpected corporate loan, known as a worksheet. These financial instruments are very risky and it is difficult to make money quickly, especially when there are financial limitations. Advertising. Advertisement. In 2021, the New York Attorney General will allocate $18.5 million to Tatars.

Critics say Teeter is essentially a controlling bank. Traders raise millions of dollars and receive millions of fluctuating coins that are used to bet on flexible currencies such as Bitcoin or Dogecoin. Tate is now handing out 70 billion cents, three times more than the Terra USD disaster.

Critics say the drop could serve as a warning to crypto banks. Perhaps all traders are in a hurry to exchange the Tatars for dollars, but only if they know that the Tatars will not be able to comply with these orders. Investors are hurting billions of dollars to force them to sell other digital currencies, which could hurt them in non-crypto markets.

The teacher faced a similar problem last month. As the value of cryptocurrencies plummets, many investors are rushing to convert tattoos into dollars, forcing companies to hold their $8 billion or $10 billion in reserves for about a week. In cryptocurrency, Teter has temporarily raised its $1 limit.

Finally, the company said it achieved that goal. The tester won and the crisis was declared.

Paolo Arduino, the company's chief technology officer, said in an interview that the incident was "the best thing that could happen to Tether." "We do not cheat and we do not take risk management seriously."

Then on Sunday, Celsius Network announced that it would stop withdrawing money, which would lead to another fall in the value of cryptocurrency. According to Bloomberg News, Teether will invest in Celsius by 2020, lending it about ً 1 billion. The company said this week that it now has a "zero commitment" percentage point with a small investment. However, as the market weakened, investors withdrew about ً 1.6 billion.

More and more skeptics are talking. Last month, a senior U.S. banking official called for new rules for Tether and his rivals, highlighting the danger of the unstructured stable coin falling on TerraUSD. Some investors are now investing their money in alternative stable coins, fearing that another fall could test whether Tether has enough reserves.

Bruce Mazer, a professor of economics at Rutgers University who studies cryptocurrencies, said: "They had enough assets to get through this stage, but that doesn't mean they have enough to move on to the next stage. Is.

According to real cryptographic standards, Tether has a strange history. The company was founded in 2014 by cryptocurrency promoter Brooke Pierce, who played a child actor in the Mighty Duck movies. He and his partner, Riv Collins, later transferred control of the company to Giancarlo Devin, a former plastic surgeon who held some of Tether's assets in a bank run by cartoonist "Inspector Gadget" in the Bahamas.

The shackles grew faster. About 50 billion stable coins were issued last year, more than three times the global supply. "If we want to use the last money, we can," Arduino said in an interview.

The company has about 50 employees in Europe, Asia, and Latin America. The president is JL van der Welde, a Dutch businessman whose LinkedIn profile shows he lives in Hong Kong. The company declined to confirm the location. He and Chief Operating Officer Divas rarely make public statements. Teter's public face is Arduino, who describes his colleagues as "ordinary people" who are satisfied with the company's growth.

"They never thought it would be that big," Arduino said. "He wasn't ready to be a public figure. There's nothing wrong with that."

Occasionally, Tether has seen its stablecoins fully supported by the US dollar. But last year, New York Attorney General Leticia James called the allegations "fake."

The cryptocurrency exchange, which was linked to Tether a few years ago, lost 850 million in transactions. To compensate for the loss, Bitcoinex borrowed from Teether Reserve and left Stablecoin partially unsecured, according to James' research.

Tyler struck a deal with the New York State Attorney General and paid an 18.5 million fine without admitting any wrongdoing. A Teether spokesman said the company's stock offer was due to a "communication error".

In October, the CFTC determined that Tether had only a quarter of the reserves in its accounts during the 26-month "sampling period" between 2016 and 2018. The company paid a commission of 41 41 million.

Since settling in New York, Tyler has regularly appeared with statements about the contents of his treasures. But his remarks did not dispel suspicions.

Last month, Tether announced $ 20 billion, or a quarter of its stock or commercial stock, 4 billion less than in February. At the same time, the impact on money market funds investing in commercial securities increased from $ 3 billion to $ 7 billion. Tether also revealed that its 5 billion in reserves were included in "other investments", including digital currencies. Critics say the report should be closed because the project still lacks the stability that many investors had hoped for.

A Tether spokesman said the company's commercial paper wallet

“The production of hard gold is as risky as the banks we’ve been running for centuries,” he said.

Tether wants to work with regulators to create a disclosure governing the global framework that stable coin issuers must adhere to for deposits, Arduino said. However, Tether rejected tougher proposals that would be subject to the same regulatory requirements as traditional banking.

"Everyone's scared - like I'm losing my life," said Collins, who co-founded Tether with Pierce and now runs the cryptocurrency BLOCKv. "It's sad, but it's sad when people would say No," I've been to the casino and done this. He lost his life, but that doesn't mean we should stop playing."