Tether Has Never Been Totally Transparent – Mike Novogratz

tether-usdt

The Tether (USDT) storm isn’t over yet. Investors from all over the world are expressing their dissatisfaction in Tether, the world’s most dominant stablecoin. According to Mike Novogratz, one of the key qualities of a stablecoin is absolute transparency. This is something Tether hasn’t offered investors. If Tether (USDT) wants to regain the trust of investors, it needs to reassure them of its credibility by becoming more transparent about its operations.

Tether (USDT) Price Today – USDT / USD

Name Price24H (%)
Bitcoin (BTC)
$5,594.80
-1.14%
Tether (USDT)
$0.99
0.14%

During an interview with Bloomberg on the 18th of October, Novogratz expressed his disappointment in Tether. In his opinion, other more transparent stablecoins are more favorable than Tether. He said that it is safer for investors to go for these coins that have known United States banking connections. In his words:

“I don’t believe Tether is doing a good job with transparency. The concepts of other stablecoins make more sense to me”.

This isn’t the first time a known investor is saying such things about Tether. In fact, Tether has repeatedly found itself in the middle of controversy in the past. Last week’s volatility was the icing on the cake. The price of Tether started to fall until it lost its USD peg. The price volatility started when Bitfinex, an exchange closely associated with Tether, faced some insolvency issues according to rumors. It’s important to note that Bitfinex denied this allegations shortly after it got the news.

During the said period of insolvency, large amounts of USDT on Bitfinex were transferred to the Tether Treasury. This spurred up a lot of suspicious within the cryptocurrency space. Within that same period, Bitfinex allegedly lost a lot of customers.

Tether (USDT) Price Analysis

Right now, the USDT/USD trading pair is in range. Tether (USDT) is trading at $0.985573. This shows that it is down by 0.08% against the USD but up by 0.21% against Bitcoin. The trading volume over a 24 hour period is $2,316,712,519. The trading volume is up compared to yesterday’s trading volume. With a market capitalization of $2,046,466,067, USDT has a maximum supply of 3,080,109,502 and a circulating supply of 2,076,421,736. Whether USDT will regain its peg against the USD is unclear for now.

SEE ALSO:   Following Yesterday's Price Dip, Major Cryptocurrencies Recover As XRP Takes ETH’s Place Once Again 

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