Tether (USTD) the stablecoin on the Ethereum blockchain, is valued at $1 per token and uses an algorithm to maintain its price. Each token issued on the blockchain has $1 to back it up. This ensures that in an instance whereby a customer was to sell their Tether, it would be possible to do so without liquidity issues.
Over the years the number of Tether tokens has increased dramatically with 69 billion tokens now on the market. A large number of tokens has made skeptics contemplate the notion of $69 billion backing the token.
Last week, a recent article was released from Bloomberg titled, “Has Anyone Seen Tether’s Billions?” The blast claimed that Tether did not have the financial backing behind their USDT stablecoin.
While the article may have reached those who do not participate in cryptocurrencies, for most enthusiasts it fell upon deaf ears.
The argument surrounding Tether and its financial backing for its stablecoin has been a conversation of speculation for some time, however not even The US government has shown any concern.
In response to Bloomberg, Tether claims the article is “nothing new” stating: “The Bloomberg BusinessWeek piece published today is a one-act play the industry has seen many times before, taking snippets of old news from various places and dubious sources, and making it fit a pre-packaged and pre-determined narrative.”
Tether criticizes the article for using sources from John Betts, a former head of Noble Bank. Tether uses Noble bank for its financial backing, A former employee of Noble Bank went on to tarnish the company.
The Tether team states, “In an ongoing lawsuit, Betts has also been accused of engaging in egregious and wasteful self-dealing and seeking to enrich himself at Noble’s expense.”
The Tether team says that the use of Betts in their article is further proof of their lack of due diligence and an act of shameful journalism.
It seems that Bloomberg's opinion did nothing to the public’s confidence in Tether, proving the current market upstanding trust in the blockchain with holders unphased about the slanderous article.