In an interview with TheStreet company American speaker-motivator Jordan Belfort who was a former Wall Street broker, said that the company Tether is the organizer of large-scale fraudulent scheme. He commented on the situation in the following way:
“They used the cryptocurrency Tether for artificially supporting the market of Bitcoin, thereby bringing a large number of new investors. Such actions lead to the illusion of endless growth of cryptocurrencies, thus supporting the growth of Bitcoin prices, which, in the absence of manipulation should have been adjusted down”.
According to the developers of Tether, a token USDT is a cryptocurrency that is tied to the US dollar, thus ensuring that 1 USDT = 1 USD. In turn, this implies that the company needs to have dollar reserves at a cost equal to all tokens currently in circulation.
Only observance of this rule can guarantee the reliability of the cash collateral currency. Thus on the official web site of the company Tether says:
“Information about the reserves of the reserve Fund is updated and published daily, and are also regular audits of professional organizations. Thus, all of the outstanding tokens USDT supported by our cash reserves.”
However, things are not exactly as reported to us by the founders of the Tether. In fact, it was held not as many audits as the company claims, however, their results do not provide the full picture. Alarming is also the fact that currently in circulation is digital tokens USDT for a total of about $2.2 billion.
As a result, cryptosuite had a suspicion that the company releases the Tether unsecured unset coins whose primary purpose is the maintenance of Bitcoin. In one of the reports claimed that without the participation tokens USDT Bitcoin price will be lower by 25% compared to today’s value.
Meanwhile, Jordan Belfort believes that most of this growth of Bitcoin prices is associated with the cunning scheme of the company Tether. However, he noted:
“I don’t think that Bitcoin is a fraud. In this case fraud is that some players kriptonyte being cheated around the digital currency, trying to manipulate the market.”