Altcoin News: Tether is Not Backed by Dollars Alone

March 15, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

Tether has updated the conditions on its website. Now it says that the stablecoin covered is not 100% covered by a dollar. Earlier, Tether claimed that for every tether in circulation, they would have one dollar in cash.

The new conditions state that although the stablecoin is supported 100% by real value, the reserves may contain other assets.

The website says:

The previous terms and conditions of Tether can simply be found online at a website such as the internet archive. There you can see that in last month’s terms and conditions, the company would have a dollar for every coin:

“Every tether is always backed 1-to-1, by traditional currency held in our reserves. So 1 USD₮ is always equivalent to 1 USD.”

A few months ago the company was already under fire for the same reason. Many wondered if Tether could really guarantee those 1.9 billion outstanding tether coins.

That uncertainty comes from Tether himself. They have never really had a completely independent audit carried out to check whether they have enough collateral. Last November, Tether tried to calm the minds by sharing a letter from Deltec Bank, based in the Bahamas. This should serve as conclusive proof of their dollar reserves.

In December 2017, Tether, together with sister company Bitfinex (a crypto exchange) was summoned by the American Commodity Futures Trading Commission. The two companies were accused by researchers of manipulating the Bitcoin price with the help of Tether.

Author: Marko Vidrih