• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Investors Concerned Over Tether's Operation Transparency

user avatar

by Giorgi Kostiuk

2 years ago


  1. Origin of Concerns
  2. Cyber Capital Founder’s Opinion
  3. Stablecoin Market and Investor Concerns

  4. Investors are increasingly worried about Tether, the world's largest stablecoin issuer, due to its persistent refusal to undergo an independent, third-party audit. With over $118 billion in circulation, concerns about Tether’s opaque operations are growing.

    Origin of Concerns

    In the context of over $118 billion in circulation, investors fear a potential liquidity crisis akin to the downfall of the FTX exchange. The lack of independent, third-party audits raises significant concerns, which could have serious repercussions for the entire crypto space.

    Cyber Capital Founder’s Opinion

    Justin Bons, the founder of Cyber Capital, has recently explained the risks of Tether. On September 14, in an X post, Bons described Tether as a 'major threat' to the crypto space. He pointed out that the company is asking the public to believe that it has $118 billion in reserves with no evidence. This lack of transparency is not new. In 2021, the U.S. CFTC charged Tether a $41 million penalty for making false statements about its reserves.

    Tether asks the public to believe that it has $118 billion in reserves without evidence.Justin Bons

    Stablecoin Market and Investor Concerns

    Tether controls more than 75% of the stablecoin market, having grown its market share by 20% over the past two years. This dominance is causing even more concern. Investors fear Tether’s size and lack of transparency could lead to a collapse similar to FTX.

    Tether's persistent refusal to undergo an independent audit and its dominance in the stablecoin market remain key sources of concern for investors. Potential risks require careful monitoring and analysis.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

Sui Developer Ecosystem Investigates AI Agent Market Infrastructure

chest

The Sui developer ecosystem is exploring AI agent infrastructure in on-chain markets, showcasing the Seal MPC prototype for secure multiparty computation.

user avatarZainab Kamara

Sui Defends Key Macro Support Levels Amid Market Uncertainty

chest

Sui is attempting to maintain its support levels while facing significant overhead resistance in the crypto market.

user avatarSon Min-ho

Chainlink's Smart Collateral Technology Chosen for DTCC Trial

chest

Chainlink's smart collateral technology has been selected for a trial by DTCC, focusing on collateral management and financial infrastructure.

user avatarAyman Ben Youssef

Significant Bitcoin Withdrawal from Binance Raises Market Attention

chest

A newly created Bitcoin wallet has withdrawn 1,350 BTC from Binance, signaling important market activity.

user avatarTando Nkube

Machi Big Brother Takes Action to Protect ETH Investments

chest

Machi Big Brother has been liquidating BAYC-related assets to defend its leveraged ETH exposure in a fragile market environment.

user avatarKofi Adjeman

Ripple Secures Preliminary CASP License Approval in Luxembourg

chest

Ripple has secured preliminary approval for a CASP license from Luxembourg's CSSF, marking a significant step in its operations.

user avatarNguyen Van Long

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.