Healthy markets with high liquidity is what is desired by every investor. Tether is the highly used dollar pegged stable coin in existence. It has been seeing a steady growth ever since its inception. Initially, Tether was issued on Ethereum making use of the ERC20 standard. Further it is now minted on several other blockchains like Tron, Bitcoin Cash, EOS, Algorand, and Liquid.
Of the many well-known stable coins, USDt tops them all in performance. Paolo Ardoino has been recently pointing to how USDt has grown by 2 million percent.
Critics claim that it is easy to say so when it is backed by nothing. Some were asking for the audit documents. Some still criticize that Tether are printing out of thin air. The criticism of not your keys not your crypto is also many times directed towards USDt users.
No matter what who have to say, Tether provides the most liquidity amongst stablecoins and has the largest market cap, far and wide. They are dominant because they are what they say.
In this regard, Sydney Ifergan, the crypto expert tweeted: “Whatever the criticism for Tether (USDt) they are standing tall and strong – that is a good thing.”
Some users have previously stated that Tether will be there to protect investors when all others buckle in the name of risk. Through various experiences, Tether have proved itself to be the most trusted assets in the crypto currency space.
One thing good about Tether is that never fake their volume. When there is a transaction that is reported to have happened it is true. This is a great deal because several exchanges keep faking the volume of transactions.
Tether (USDt) Criticism
Some of them have been criticizing stating that the Tether Ponzi Scheme will damage Bitcoin.
Two most controversial citations about Tether are:
“On 20 November 2018, Bloomberg reported that U.S. federal prosecutors are investigating whether Tether was used to manipulate the price of bitcoin.”
“On 30 April 2019 Tether Limited’s lawyer claimed that each tether was backed by only $0.74 in cash and cash equivalents”
Critics have to state that just like all Ponzi schemes where the scheme requires ever greater incoming funds to keep the scheme going tend to show the exact same pattern when they blow up. The numbers of greater fools who are needed to sustain the fraud are an exponential function, because the promised returns on the overall capital invested tend to compound. Also, if everybody pulls out they land up in a hurry, and therefore, when the price drops below the expected returns, people are likely to sell or pull out.