• 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

Concerns Over Legal Liabilities for Crypto Developers

chest

Recent prosecutions highlight the risks faced by developers in the crypto industry amid ongoing legislative debates.

user avatarNguyen Van Long

Laurore Ltd Surfaces as Major Player in Bitcoin ETF Market

chest

Laurore Ltd has emerged as a significant buyer of BlackRock's iShares Bitcoin Trust, acquiring 8,786,279 shares valued at approximately $337.3 million, raising questions about its identity and motivations.

user avatarSatoshi Nakamura

Citigroup Raises Nvidia Stock Price Target to $270

chest

Citigroup has raised its price target for Nvidia stock to $270, anticipating strong revenue growth and performance in the AI sector.

user avatarJesper Sørensen

Robert Kiyosaki Predicts Market Slide and Advocates for Accumulation

chest

Robert Kiyosaki anticipates a significant market downturn and encourages investors to buy assets like Bitcoin and Ethereum during market panic.

user avatarRajesh Kumar

Legal Challenges Emerge for Crypto Platforms Amid Regulatory Scrutiny

chest

Legal challenges arise for crypto platforms in the US as state regulators take action against unlicensed wagering, leading to disputes over contract classification.

user avatarLucas Weissmann

Simon Dixon Critiques Ripple and XRP's Impact on Bitcoin

chest

Simon Dixon critiques Ripple and XRP for undermining Bitcoin's purpose, describing XRP as a psyop that causes division in the crypto community.

user avatarFilippo Romano

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.