Mike Novogratz Says Not Enough Transparency with USDT
During a Bloomberg interview, Mike Novogratz, owner of Galaxy Digital, explained that stablecoin Tether (USDT) is supposed to be more transparent when it comes to its processes. He also said that he preferred other USD stablecoins with well-known connections in US banking. When he spoke about the businesses Tether runs offshore, he declared that he doesn’t believe they are doing well when it comes to establishing a transparent atmosphere. He also stated that the idea of stablecoins is a sensible one and spoke specifically about the Gemini Dollar, which was introduced in September by the Winklevoss twins.
The Fall of Tether
This week, Tether’s position became controversial, due to its instability, as it lost its USD peg, which it held for a long time. The USDT traded at $0.975 and at some point dropped to as little as $0.91.
These issues paralleled with rumors that the Chief Executive Officer of Tether and Bitfinex, the cryptocurrency exchange, was facing bankruptcy. Those rumors were then refuted by officials. In the meantime, a significant sum of Bitfinex's USDT holdings were conveyed to the Treasury at Tether. This led to a new wave of apprehensiveness regarding the resilience of the exchange.
Ran Neuner, the Cryptotrader host at CNBC, speculated that Bitnifex lost a number of its clients when he commented on the information brought forth by Element Group Thursday, the digital asset investment bankers. The information states that Bitfinex now holds less than exchanges such as Poloniex and Huobi and that Binance became the second biggest USDT owner.