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Tether Grows as Algorand Finally Adds USDT Tokens

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Tether

Tether

The crypto sphere has developed at a remarkable rate over the course of the past half a decade, and one of the biggest developments has been the emergence of stablecoins like Tether (USDT). Despite skepticism from many in the crypto space, the stablecoin has continued to grow, and in a new development, it has been added by Algorand.

Major Details

This is a significant development for USDT, but it remains to be seen whether there is any rally in the stablecoin in the coming days. Algorand is one of the most innovative projects and operates a proof of stake blockchain that is totally permissionless.

This is a major development for the simple reason that it will result in greater use of USDT and also grow Tether’s supply considerably in the crypto space. In addition to that, Tether will also be available over a wider range of networks, and that is something that almost all tokens aspire to.

The supply of USDT has grown exponentially in recent years, and at this point in time, it has a total supply of 4.7 billion. It is trying to make use of a range of networks in order to further boost its supply.

The Chief Technology Officer of Tether spoke about the collaboration with Algorand and said how it is going to be mutually beneficial, explaining, “Our latest collaboration with Algorand leverages the speed and security of Algorand’s protocol to give traders fast settlement and reduced counterparty risk in their fiat to digital asset transactions.”

>> Bitcoin (BTC) Soars to 4-Month High, Crosses $10K Mark

Over the past few years, USDT has become an integral part of many exchanges and is often used by traders as a trading pair. However, it is now looking at ways to further boost the supply and use cases of USDT. In that regard, the latest collaboration agreed by Tether is a significant development.

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Tether to Launch Gold-Backed Stablecoin

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Tether

Tether

Over the course of the past few years, stablecoins have become one of the most important constituents of the crypto ecosystem, and Tether is certainly the most well-known. The stablecoin is backed by several fiat currencies, and over the years, it has worked as an excellent substitute for fiat currencies for crypto traders.

Key Points to Watch

In a new development, it has now emerged that Tether is all set to launch a new cryptocurrency that is going to be backed by gold. The cryptocurrency in question is “Tether Gold,” and according to reports, it could be launched by the time Christmas comes around this year.

In this regard, it should be noted that the timing of the launch is quite interesting. It is now a well-established pattern that cryptocurrencies often enjoy a rally of sorts during the festive season, and hence, the launch around Christmas could be a strategic move. That being said, any rally in the gold-backed stablecoin can only come about if the project is interesting.

The Chief Technology Officer of Tether, Paulo Ardoino, spoke about the new project: “Current macro-finance uncertainty brings the need for traditional instruments to hedge the risk of our customers, especially in the crypto industry.” He went on to state that gold has been used as a hedge against market risks for a long time.

>> Binance Gets Banned on Weibo as China Continues Crypto Crackdown

That being said, it should also be pointed out that Tether’s new cryptocurrency might not be an entirely novel product. There have been reports that there are other crypto-based platforms that are also working on similar products. For instance, it has been reported that Coin Shares, a company that is involved with stablecoins, has been exploring the possibility of launching a gold-backed cryptocurrency. While it is true that Bitcoin is often referred to as ‘digital gold,’ it could be ‘Tether Gold’ that could prove to be a literal pioneer in that particular field.

What do you think?

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Is Tether Taking Over the Ethereum Network? Buterin Warns of Issues

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Tether

Tether

Processing transactions in the digital token Ether on the underlying blockchain could soon be expensive for some users. This is warning issued last week by Vitalik Buterin, the co-founder of Ethereum.

According to tracker Etherscan.io, utilization of the Ether network has significantly increased to around 90%. Buterin indicated that as utilization grows, so do transaction costs, and that might deter corporate users from using Ethereum.

Tether Replacing ICOs on Ethereum Network

During the height of cryptocurrency, the digital game CryptoKitties was taking off and slowing down the Ethereum network immensely. Then, several initial coin offerings, most of which turned out to be scams, took up even more space on the network, slowing it even more. Now, most of the ICOs are gone, but a new coin has taken over the space previously occupied by them: Tether.

Data researcher Ethgasstation.info reveals that in the past month, Tether has paid computers that process transactions on the Ethereum network close to $260,000 in fees. This is 17.5 times more than CryptoKitties and six times more than IDEX, the largest distributed exchange in the World. The use of Tether is on the rise in recent weeks following more coins being issued.

>> Slim Chance of Bitcoin (BTC) Hitting $20,000 USD By End of Year

Tether’s Market Cap Exceeds $4 Billion

According to CoinMarketCap, the coin’s market capitalization recently exceeded $4 billion, growing from $2.7 billion in 2018. Last month, John Griffin, a finance professor at the University of Texas, estimated that around 40% of Tether runs on the Ethereum network.

Recently, Coin Metrics indicated in what is seen as the growing popularity of the coin that it was used in 40% of all transactions on Binance and 80% of transactions on Huobi. With Tether taking up more space in the Ethereum network, then it means less space will be available for other developers.

Most crypto enthusiasts touted Etherreum to be better than Bitcoin because of its extra features. For instance, users could automate tasks as well as set autonomous corporations running themselves through software. But with this new development, some developers are avoiding Ethereum until it tweaks the network to increase capacity.

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Bitfinex and Tether Lawsuit Revised After Plaintiffs Drop Action

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Bitfinex

Bitfinex

Controversial cryptocurrency exchange Bitfinex and its sister stablecoin issuer Tether have had a lawsuit against them withdrawn by two plaintiffs and re-filed with the addition of a new plaintiff.

The two companies were accused of creating “the largest bubble in human history” in a lawsuit filed in New York in October, which alleged that Bitfinex and Tether manipulated the crypto market out of up to US$1.4 trillion. A second, similar case was then brought against the two companies by Eric Young and Adam Kutz, who claimed that Bitfinex and Tether “monopolized and conspired to monopolize the Bitcoin market,” as well attempting to manipulate the market and making inaccurate claims.

Both cases were built upon longstanding claims that Tether essentially printed billions of dollars worth of tokens to artificially inflate prices and convince the market that there was a far greater demand for cryptocurrencies than was the reality.

A document filed on Tuesday, January 7, in the US District Court for the Western District of Washington shows that both Young and Kutz agreed to the voluntary dismissal of their case against iFinex, the parent company of Bitfinex and Tether. The suit was refiled the following day with the addition of David Crystal as plaintiff. It is not yet known why Young and Kutz decided to refile the case, and US law states that cases which have been voluntarily dismissed can never be brought to court again if it is dismissed a second time.

Both companies are steadfast in their denial of the accusations, describing the claims thrown at them as “meritless and mercenary.” Stuart Hoegner, general counsel to Bitfinex, said that the refiled case was also baseless and “will be disposed of in due course.”

>> Bitcoin SV (BSV) Jumps Another 28%: Gains 55% So Far in 2020

Tether had emphasized that its coin is backed 1:1 with the US dollar but flip-flopped on this stance in February when under investigation by the Department of Justice, changing its position to say its reserves “from time to time may include other assets.” Tether then made another walk back from this claim in April, when one of its lawyers admitted in court that the USDT was actually only 74% backed by cash or cash equivalents.

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Tether Fires Back At “Flawed” Study, Says Coin is Backed By USD Again

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Tether

Tether

Tether has responded to what it describes as a “flawed” paper written by academics from the University of Texas and Ohio State University, which claimed that a single address on the Bitfinex exchange was responsible for manipulating the surge in Bitcoin value in 2017.

Tether Claims Study Was Lacking in Data

Professor John Griffin and Amin Shams analyzed over 200 gigabits of data relating to the transaction history between Bitcoin and Tether and found that the surge in value in late 2017 was attributable to one large trader, or a whale in the crypto world, but the identity of the investor remains unknown.

In a statement released on Thursday, Tether has said that the academics’ claims are “built on a house of cards” and are unsubstantiated due to a lack of a complete dataset. “As an example of one of many deficiencies, the authors openly admit they do not have accurate data on the crucial timing of transactions or the flow of capital across different exchanges. This critical lack of information means they are unable to establish a valid sequence of events through which the alleged manipulation could have happened.”

Tether Market Manipulation

However, the concerns that Tether has manipulated the crypto markets have been around for a number of years. Last month, Tether, and its sister company Bitfinex, were accused of orchestrating “the largest bubble in human history” in a class-action suit. The case alleges that the two companies, and a number of affiliated entities, manipulated the crypto market out of up to $1.4 trillion USD by printing unbacked coins.

>> Microsoft Partners with Ethereum to Create New Digital Assets

Tether has regularly flipped-flopped on its stance that its coin is backed 1:1 with fiat currencies. In February, while under investigation from the Department of Justice, the company changed its stance from saying that every token was “1:1 backed to the dollar” to say that its reserves “from time to time may include other assets.” There was a further walk back in April when one of its lawyers said it was actually only 74% backed by cash or cash equivalents.

In yesterday’s statement, Tether has said that its token is backed by reserves, but did not specify what those reserves were.

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Bitfinex and Tether Hit With Another Market Manipulation Suit

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Bitfinex

Bitfinex

Bitfinex and its sister stablecoin issuer Tether have been handed another lawsuit alleging both firms manipulated the crypto market, following a similar such suit last month in New York, which claimed the companies created “the largest bubble in human history.”

The second suit has been filed by Eric Young and Adam Kurtz at the district court in the Western District of Washington on November 22 and draws heavily from the previous lawsuit. In an extensive list of claims, Young and Kurtz say that Bitfinex and Tether “monopolized and conspired to monopolize the Bitcoin market,” as well as manipulated the market, manipulated information, or made inaccurate claims.

The manipulation centers around Bitcoin and its massive bull run in 2017, which saw BTC trade as high as $20,000 USD. Both lawsuits cite a study by academics at the University of Texas who analyzed over 200 gigabits of data relating to the transaction history between Bitcoin and Tether and found that the surge in value in late 2017 was attributable to one large trader, or a whale in the crypto world. Bitfinex hit back at that study, claiming it was “built on a house of cards” and unsubstantiated due to a lack of a complete dataset.

Bitfinex has again responded to the new lawsuit in a blog post on Sunday. “As we predicted last month, mercenary lawyers continue to try to use Bitfinex and Tether to obtain a payday. To be clear, there will be no nuisance settlements or settlements of any kind reached. Instead, all claims raised across both actions will be vigorously contested and ultimately disposed of in due course,” the exchange wrote.

>> Bitcoin Falls Another 10% on China’s Crackdown: Should You Be Worried?

While Bitfiex is resolute in its denial of the accusations leveled at it, the company and its sister firm Tether have regularly shrouded themselves in controversy and suspicion. Tether has frequently flip-flopped on its stance as to whether its coin is backed 1:1 with the USD. Recently, it said its stablecoin was backed by reserves but did not specify what those reserves were.

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Tether (USDT) Accidentally Creates $5 Billion in Crypto

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Tether

Tether

Stable coins, which are backed by fiat currency, have become an integral part of the crypto ecosystem over the past couple of years, and in that regard, Tether (USDT) is possibly the most well known. However, the very fact that it is backed by fiat makes it possible for it to be prone to certain errors, and that is exactly what happened yesterday when the team behind USDT made a mistake that had an effect on the wider crypto market for some time.

Administrative Error

In an astonishing development, the members at Tether transferred $5 billion worth of USDT tokens to the TRON Blockchain from Omni Layer, instead of the $50 million that they had originally meant. All of a sudden, the market was flooded with billions of dollars in Tether that had been created out of the thin air due to an administrative error on the part of Tether team members.

However, the team got to work quickly, and just four minutes after the transfer had been made, $500 million worth of Tether tokens were destroyed. Later on, $4.5 billion worth of token were burned in order to neutralize the error that had occurred in the first place. The problem emanated from Polinex, a highly popular and well-regarded crypto exchange. Tether had actually requested the exchange to take care of the swap, and that is when the error took place. Polinex clarified the issue in a statement.

>> Bitcoin Tumbles Below $10K Mark as Crypto Market Turns Bearish

On the other hand, the Chief Technology Officer of Tether, Paulo Ardaino, and crypto exchange Bitfinex stated that they proceeded to burn the tokens quickly enough. He took to Twitter and shared a tweet in which the burn transactions of Tether had been recorded. However, he conceded that such an error could have had a debilitating effect on the entire crypto market. It is the sort of error that can always happen when it comes to currency generation in which there is a human element, but such things usually do not happen with traditional cryptocurrencies.

At the time of writing, Tether is trading higher by 1% at $1.

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Tether Accused of Major Market Manipulation in Trillion Dollar Lawsuit

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Tether

Tether

Tether and its sister company Bitfinex have been accused of creating “the largest bubble in human history” in a lawsuit filed in New York this week.

Tether Artificially Inflated Prices

The class-action suit filed in the Southern District of New York alleges that the two companies, and a number of affiliated entities, manipulated the crypto market out of up to $1.4 trillion USD. The suit’s central allegations center around long-standing claims that Tether essentially printed billions of dollars worth of tokens to artificially inflate prices and convince the market that there was a considerably greater demand for cryptocurrencies than in actuality.

“Part-Fraud, Part-Pump-and-Dump, and Part-Money Laundering”

“Part-fraud, part-pump-and-dump, and part-money laundering, the scheme was primarily accomplished through two enterprises—Bitfinex and Tether—that commingled their corporate identities and customer funds while concealing their extensive cooperation in a way that enabled them to manipulate the cryptocurrency market with unprecedented effectiveness,” the class-action alleges. Tether accounts for almost 80% of all digital tokens in circulation and recently became the world’s most widely used cryptocurrency.

Tether Flip-Flopping on USDT Backing

Tether has always emphasized that every USDT token was backed 1:1 by fiat currency that it had in its reserves. However, the company changed its stance in February when under investigation by the Department of Justice to say that every USDT token was “1-1 pegged to the dollar” and “100% backed” by reserves that “from time to time may include other assets.” Tether then made another walk back from this claim in April, when one of its lawyers admitted in court that the USDT was actually only 74% backed by cash or cash equivalents.

>> Tim Cook Talks Cryptocurrencies: It’s a No for Tech Behemoth

Tether attempted to preempt the breaking of this story by releasing a statement over the weekend entitled “Tether Anticipates Meritless and Mercenary Lawsuit Based on Bogus Study.” In this statement, the company disputes the allegations leveled at it, arguing that they are based upon “flawed assumptions, incomplete and cherry-picked data, and faulty methodology.” The statement goes on to describe the lawsuit as “opportunistic” and says it will vigorously defend itself.

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Tether and Bitfinex Unopposed to Lawsuit Consolidation

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Tether

Tether

Three plaintiffs who have been involved in three separate lawsuits against Tether and its sister company Bitfinex have moved to consolidate their cases into one class-action suit.

Court filings by David Leibowitz et al., Eric Young et al., and Bryan Faubus et al., accuse Tether and Bitfinex of creating “the largest bubble in human history” after they allegedly manipulated the crypto market out of up to US$1.4 trillion. All three cases were brought against the companies off the back of longstanding claims that Tether essentially printed billions of dollars worth of digital tokens in order to inflate prices and convince investors that the demand for cryptocurrency was considerably greater than in actuality.

All three cases have now been refiled as one in the US District Court for the Southern District of New York. While Tether and Bitfinex both refute the claims made against them, they have shown no objection to the consolidation of the cases, with Tether even writing in a statement that it “looks forward” to disproving the “fanciful accusations.” The move to consolidate the cases provides further clarity to the decision of Eric Young to withdraw his case and refile it with the addition of David Crystal as a plaintiff.

A fourth suit was also filed against Tether and Bitfinex last week, which is expected to be consolidated with the three already preexisting cases.

“Tether will continue to defend the digital token ecosystem and the many contributions of the cryptocurrency community, and will not now or in the future pay any amount to settle plaintiffs’ claims,” read the company’s statement. “Tether and its affiliates have never used Tether tokens or issuances to manipulate the cryptocurrency market or token pricing.”

>> Zipmex Exchange Gets Crypto Trading License from Thai Regulators

While Tether has always advertised that its coin is backed 1:1 with the US dollar, that position has been called into question recently. When under investigation by the Department of Justice in February, it changed its position to say that its backing may include other assets from time to time. This position was cast into further doubt when a lawyer representing Tether said that its coin was only 74% backed by cash or cash equivalents.

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Tether Introduces New Yuan-Linked Stablecoin, CNHT

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Tether

Tether

The cryptocurrency space has had its fair share of controversies throughout the course of its short existence, and one of the biggest ones to date is the one related to stablecoins. There are plenty of stablecoins in circulation these days, but the most controversial one so far is Tether, and it is simply due to the fact that is it is the most popular one within this particular group of digital assets.

Key Analysis

The reason why many in the crypto space are suspicious of Tether and other stablecoins is because most of them are backed 100% by the United States dollar (or another fiat currency). However, it goes without saying that for many traders, Tether has its own uses, and it has become quite popular over the years.

The controversies surrounding Tether are not going to stop it from growing further, and today the stablecoin issuer announced that it has launched another stablecoin, only this one is going to be backed by the Chinese Yuan. The one backed by the US Dollar is known as the USDT, and the newly launched token is going to be called the CNHT. It should be noted that the Tether platform has also produced the EURT, which is backed 100% by the Euro. Due to the launch of this new digital asset, Tether has stated that the world’s main fiat currencies can now be put to proper digital use.

>> Facebook Libra to Be Pegged to Multiple Currencies as Stablecoin

Tether has had a controversial history so far and is subject to lawsuits related to security laws violations. In addition to that, it has also been alleged that Tether has been used by rogue traders to artificially prop up the price of Bitcoin and other cryptocurrencies. It is a problematic allegation since such actions might point to a pump and dump scheme by way of which gullible investors might end up losing a lot of money. It remains to be seen how the latest digital asset is welcomed by the crypto space.

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