Breaking News: Is The Tether FUD Over?

Many are thrilled that Tether has received some legal breakthrough on the situation, but others still feel this is a slap on the wrist. Overall, more questions have arisen as currently, USDT is one of cryptos hottest topics.

By
Wilfred Victor
on
February 23, 2021
Category:
Breaking News

Introduction

Over what seems like a long battle that dealt with Tether’s credibility, the most valued crypto stable coin in the industry, there appears to be a more transparent future for the stable coin issuer. Today, the crypto community received news of the Tether and Bitfinex settlement with the New York’s General Office. 

Within hours of Tweeting the news, the tweets have gained an increasing number of Retweets, Likes, and Engagements, ultimately renewing faith and hope. On the other hand, some continue to raise more fear, uncertainty, and doubt (FUD) regarding Tether as users express their opinions on the verdict.


About Tether

Tether, the issuing company for the stable coin USDT, is the biggest, most valued stable coin issuer in the market. Recently, there has been news regarding several allegations questioning USDTs collateralization. As of today, Tether has just gotten its first huge legal break. Currently, sitting at the number 4 of the coinmarketcap, we hope this is the last of the allegations in a more transparent future.



What Started the Debacle?

The US Security and Exchange Commission has pursued the stable coin printer owned by Hong Kong iFinex inc. This began when Tether failed to publicly disclose a loan it issued to its sister exchange company, Bitfinex. Bitfinex encountered problems accessing approximately $850 million in Bitfinex funds held by a payment processing company in 2018. The issue sparked a debate about Tether’s transparency and assets. Moving forward, many accused Tether of manipulating the market with its constant minting of USDT. Many people compared its likening to the US Federal Reserve, which prints Dollar out of thin air. This allegation has seriously dented the claims of USDT as a fully collateralized stable coin.

Ever since the allegation, there have been several back and forth between Tether and the SEC, with USDT frequently in the news trying to clear out the allegations. The stable coin issuer claimed to have submitted 2.5 million pages of documents to answer SEC questions and bring the matter to a close in its press release.


SEC Settlement and Continued Operations

Today marks the end of a prolonged legal quagmire with the stable coin issuance company, as it made a settlement of $18.5 million to close the matter and move forward with its operation in good faith. The company has come forward to say it will increase its operations’ transparency, including its backed treasury, and issued loans with the Attorney General office and the crypto community. It does not take this renewed stance reluctantly but choose to embrace it fully.


Community Sentiment

Checking the global trend using TrendsTwitter, Tether is currently trending globally at the number 22 spot with over 23,870 Tweets and counting;

Reactions under the announcement tweets are diverse kinds, with some users expressing their initial doubt and how that the settlement confirms the allegations. Some expressed good faith, celebrating and congratulating the company’s recent breakthrough.

The recent Tether news has also been trending in multiple crypto forums on Reddit, the internet’s front page. These discussions are laced with various arguments about the news, following the same sentiment as the Twitter crypto community.


Closing Thoughts

Is this a sign of more bullish market conditions as one of the most significant stable coins in the market gets the SEC settlement? Questions such as these have arisen as currently, USDT is the most valued stable coin in market capitalization and volume, making it one of cryptos hottest topics. Overall, it seems this narrative will continue to develop as the crypto community has seen this as mixed news. Many are thrilled that USDT has received some legal breakthrough on the situation, but others still feel this is a slap on the wrist. 

In turn, there are multiple unanswered questions that the crypto community wishes to know. Does this recent news increase the market’s overall health with increased transparency and an open book to both the Attorney General and the public? Where does that leave the entire crypto industry in the coming years? These are just some questions that remained unanswered, but they will come with time. Answers are in the future.


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Wilfred Victor

Ace finds himself as a blockchain enthusiast who is focused on growing with the entire crypto sector. He is an energetic and passionate writer who believes that all things are achievable.