A quarter of Tether (USDT) Stablecoins are not Backed by Fiat Currency
Most likely, the startup Tether missed $694 million due to the difficult financial situation of the Bitfinex exchange. The New York State Prosecutor’s Office is accusing the Hong Kong marketplace of misuse of clients’ financial assets. The exchange spent USDT tokens worth $600 million to cover part of the loss. Representatives of Bitfinex and Tether claim that their companies do not fall under the jurisdiction of the United States because they do not provide services to residents of New York and do not work in the United States. Bitfinex executives stated that 600 million USDT coins were issued on credit, and not spent on repaying losses. In March 2019, Tether made changes to the documentation of the cryptocurrency project USDT. According to the new edition, each token is secured by company reserves consisting of fiat currencies and their equivalents, as well as other assets and loan receivables. The previous version of Whitepaper said that the cryptocurrency rate is supported only by the US dollar. We want to remind you: https://thecoinshark.net/bitfinex-exchange-plans-to-hold-the-first-1-billion-ieo/ Subscribe to The Coin Shark news in Facebook: https://www.facebook.com/coinshark/
I’ve decided to postpone our #USDT rewards program for future updates until there’s more clarity regarding @bitfinex and @Tether_to. Regardless, I firmly believe stablecoins will continue to play a big role in the blockchain space. $TRX #TRX #BTT $BTT https://t.co/xpe1eA2URK— Justin Sun (@justinsuntron) 1 мая 2019 г.