Why Questions About Tether’s Reserve Assets Still Matter (2024)

‘Shock And Awe’—China Could Be About To Trigger A $1.4 Trillion Bitcoin And Crypto Price Earthquake","scope":{"topStory":{"index":1,"title":"‘Shock And Awe’—China Could Be About To Trigger A $1.4 Trillion Bitcoin And Crypto Price Earthquake","image":"https://specials-images.forbesimg.com/imageserve/648ee69ed5ef741d05b1e994/290x0.jpg","isHappeningNowArticle":false,"date":{"monthDayYear":"Sep 13, 2024","hourMinute":"07:15","amPm":"am","isEDT":true,"unformattedDate":1726226101000},"uri":"https://www.forbes.com/sites/digital-assets/2024/09/13/shock-and-awe-china-could-be-about-to-trigger-a-14-trillion-bitcoin-and-crypto-price-earthquake/"}},"id":"2od69dmqf8q000"},{"textContent":"

Sep 12, 2024,05:41am EDT

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Sep 11, 2024,10:20am EDT

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Sep 11, 2024,09:12am EDT

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Sep 11, 2024,08:00am EDT

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Sep 10, 2024,05:00am EDT

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Sep 9, 2024,09:33am EDT

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Sep 9, 2024,08:43am EDT

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Why Questions About Tether’s Reserve Assets Still Matter (2024)

FAQs

What are the risks of Tether? ›

The organization also raises concerns about Tether's alleged connections to sanctioned entities. According to Consumers' Research, Tether has been involved in transactions with Garantex, a Russian crypto exchange that was sanctioned by the U.S. Treasury in 2022.

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What are Tether reserves? ›

Tether is a cryptocurrency that attempts to maintain a value peg to an underlying currency such as the dollar or euro. It does this by keeping enough actual currency or equivalents in reserves that the cryptocurrency holds the same value as the fiat currency.

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What is the main purpose of the USDT tether? ›

Tether's (USDT) aim is to provide a less volatile digital currency by pegging its value to the US dollar at a 1:1 ratio. USDT is one of the most widely adopted stablecoins, which are blockchain-based currencies that are tied - or tethered - to fiat currencies.

What is the legal issue with USDT? ›

The legal status of Tether (USDT) was a preliminary issue in a case brought by a fraud victim whose stolen crypto — including Tether — was offloaded through various crypto exchanges after being put through crypto mixers.

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Why is Tether a problem? ›

The stablecoin issuer has previously been subject to regulatory scrutiny due to lack of transparency about the composition of its reserves, the bank said, adding that the "new regulations would intensify pressure on Tether to provide more detailed disclosure and audits."

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What is the Tether scandal? ›

Tether, one of the world's most traded cryptocurrencies, has become a key tool for criminals, money launderers and scammers, according to a United Nations report published Monday, amid intensifying legal and regulatory scrutiny over how digital assets are being used to aid illicit activity.

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Should I keep my money in Tether? ›

USDT is generally considered safe for investment, especially as a means to hedge against the volatility of other cryptocurrencies. However, like any investment, it comes with risks, and it's essential to consider Tether's efforts to maintain transparency and regulatory compliance.

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Who is behind the Tether? ›

Who Are the Founders of Tether? (History of USDT) Tether (USDT) was originally launched on October 6th, 2014 as Realcoin by Brock Pierce, Reeve Collins, and Craig Sellars (a member of the Omni Foundation).

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How to turn USDT into cash? ›

Sell Tether for Fiat. Cash Out USDT in a Few Clicks

Enter the amount of USDT that you wish to sell.
Input the bank or card details where you'd like to receive your funds.
Confirm the information to create your sell order.
Send the exact amount of Tether to the provided wallet address.

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What happens to USDT if USD crashes? ›

Each unit of USDT is intended to maintain a value equal to that of the US dollar. This means that the dollar devaluation can reduce the USDT's purchasing power globally. Purchasing power refers to the number of goods or services that can be acquired using a specific asset within a given timeframe.

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Is it safe to have money in USDT? ›

USDT unique attribute is the fact that its value is guaranteed by Tether to remain pegged to the USD, which is seen as a safe haven for crypto investors.

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Is USDT backed by the US government? ›

USDT is marketed as a stablecoin that is backed by reserves of fiat currency, specifically the US dollar, on a 1:1 basis. However, the extent to which these reserves are held and the level of transparency surrounding them have been met with skepticism from critics and members of the crypto community.

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Is it safe to keep money in Tether? ›

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How trustworthy is Tether? ›

Tether is not a central bank, bank or regulated in any way by any country other than British Virgin Islands. It is not audited, has been fined by financial regulators for financial misconduct and revealed that its stablecoin is mostly not backed by the US dollar. Yet, tether still trades at about a dollar.

Is Tether 100% safe? ›

For a full list of supported blockchains and protocols, please see our Supported Protocols Page. Every Tether token is 100% backed by Reserves, which includes traditional currency, cash equivalents, and other assets, including receivables from loans made by Tether to third parties.

What are the disadvantages of tethering? ›

Disadvantages of tethering

Even a fast internet connection won't be as fast using tethering, meaning a slow connection will be even slower. Battery usage: Tethering uses a lot of battery, so you might need to recharge your phone a lot sooner than expected, meaning the flexibility of function can be a bit limited.

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