• 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

a year 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

Crypto Treasury Sector Faces Decline Amid Market Changes

chest

The crypto treasury sector is experiencing a significant decline, with monthly inflows dropping to approximately $555 million, the lowest since October 2024, due to investor caution amid market uncertainty.

user avatarRajesh Kumar

Grant Cardone Introduces Innovative Crypto Treasury Model

chest

Real estate mogul Grant Cardone proposes a new strategy for the crypto treasury industry by pairing Bitcoin with rental income from multifamily housing.

user avatarGustavo Mendoza

Crypto Expert Predicts XRP Price Target of 100

chest

Crypto pundit Bird discusses the potential for XRP to reach a price of 100, citing the capabilities of the XRP Ledger.

user avatarLuis Flores

Analysts Suggest XRP Price Could Experience Bullish Reversal

chest

Crypto analysts discuss the potential for XRP to break key resistance levels, indicating a bullish trend.

user avatarMiguel Rodriguez

Trump Selects Kevin Warsh as Candidate for Federal Reserve Chair.

chest

US President Donald Trump has nominated pro-Bitcoin Kevin Warsh to the US Senate for the position of Federal Reserve Chair.

user avatarArif Mukhtar

NYSE Parent Company Invests in OKX, Valuing Crypto Exchange at $25 Billion

chest

The New York Stock Exchange's parent company has invested in the crypto exchange OKX, valuing it at $25 billion and enabling trading of tokenized stocks and derivatives.

user avatarDavid Robinson

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.