59% Of Polled Shareholders Do Not Trust That Tether is Entirely Supported by USD
Tether is one of the largest digital monies in the market. It is currently ranked among the top ten cryptocurrencies by market cap.
The crypto has faced numerous challenges in the market. Many individuals are suspicious about the amount of dollars that the entity claims to hold in order to backstop its token. Investigations reveal that they hold a small fraction of the stated USD.
Tether is giving false information about their Dollar holdings because their bank reserves have never been audited. Last year, they released a proof of funds but many individuals still thought that the document was fraudulent.
Friedman LLP also dissolved their association with Tether. This shows that they at one time had a rosy relationship with the latter. However, no one has proven that Tether has been deceiving the public on the amount of dollars they hold. As a result, many people have treated the allegations as mere market rumors.
The poll that was conducted on the matter indicates that 59% of the investors do not trust Tether’s statements. Additionally, 73% of those who were polled in Blockchain Telegram do not trust that every USDT is fully backed by $1.
Tether’s Future Is Unpredictable
USDT’s currency market capitalization experienced a significant decline from the start of the month. It dropped to $1.9 billion from the previous amount of $2.8billion. The Stablecurrency has lost its steadiness of late. The Tether dollar was selling below $1 price this month. It recorded the lowest price this month when it traded at $0.94.
Many investors have lost faith in Tether because of their perceived dishonesty. Moreover, the increasing number of Stablecurrencies joining the market has given Tether ample competition. Some of these competitors include GUSD and PAX which have been authorized to operate in New York. The two are the first cryptocurrencies to be introduced to the market.
Another challenger is Circle USD currency. The currency’s CEO Believes that the crypto-market is likely to shift from Tether and support other honest Stablecoins.
Stablecoins Must Be Trustworthy To Investors
In future, the entities in the cryptocurrency industry must be trustworthy in their dealings to win the trust of customers. A transparent market will attract many investors to the cryptocurrency business. This is because they will not fear to lose their investments because of fraud.
Despite Tether’s challenges, it still remains the most used Stablecurrency in the market than other alternatives.
The upcoming Stablecoins might pose a great danger to Tether if they do not restore their lost glory. In this case, they must show the members of the public that they can be trusted.