Tether has attracted a lot of attention over the past year but it now appears that the company is being plagued by rumors that can potentially tarnish its reputation.
Kraken Isn’t Concerned About Tether
Over the past couple of weeks, the number of complaints and rumors regarding Tether and USDT have increased significantly. It appears as if a lot of people fear that Tether is manipulating the cryptocurrency market and does not possess sufficient financial assets to warrant a high supply of USDT. However, so far, no credible evidence of any wrongdoing has surfaced.
For Kraken, these rumors pose a bigger problem. In a recent blog post, the company explained how these allegations can potentially impact the fostering of new cryptocurrency regulations in a negative manner.
More Details Regarding The Controversy
The USDT market is not exactly a big part of Kraken’s business. With just one USDT pair to take note of, Kraken makes up less than 0.1% of the daily aggregate volume. So far, the company has not noted any manipulation to speak of, which is somewhat of a relief. Do keep in mind Tether’s token is traded across a lot of other exchanges as well. Over 2 million USDT tokens exist at this time.
Perhaps the most important highlight is the solvency “risk” introduced by Tether. However, Kraken is confident that there is no concern in this regard.
Regardless of how legitimate Tether may be, rumors and allegations will always surround digital currencies. Any currency tied to physical/fiat assets will always spark debates, especially if that asset proves to be as popular and successful as USDT. The project currently has a market cap most cryptocurrencies will never reach and it is possible that that has created some proverbial bad blood which is fueling these allegations.
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