Is the price of USDT stable? It turns out that the tether used Bitcoin as a collateral asset
・ Bitcoin was included as a backing asset for the tether
Crypto currency media, The Block, reported that bitcoin was included as part of the backing assets of the tether company that issues stable coin tethers (USDT). It has not been clarified at present how long a proportion of collateralized assets has been collateralized by Bitcoin.
According to court papers, David Miller, a lawyer at Tether, said that Bitcoin was included as part of the backing for Tether.
Tether has also invested in assets other than cash and cash equivalents, including bitcoin.
In response to such remarks, Judge Joel M. Cohen of the New York Supreme Court pointed out the false logic of Mr. Miller’s remark:
The tether was perceived as a secure asset in virtual currency trading, but if the tether was backed by bitcoin, the story is different. If the tether is linked to a highly volatile virtual currency, it may not be different from other currencies.
Miller explained that his investment in Bitcoin was “small” and that he had diverted money to other assets, but the tough conditions for tether will continue.
・ The tether problem that has rekindled this year
Tether’s terms of use had long described one tether as an asset worth one US dollar, but by March of this year the description of Tether’s currency was changed without reporting.
Although it is doubted that the tethers that would have been secured only in the US dollar are included in the backing assets of the same subsidiary, Bitfinex, but this time they are also invested in Bitcoin It is clear. Generally speaking for bitcoins and virtual currencies, the price variability is higher than for regular asset classes such as stocks.
Among them, stable coins such as tethers were supposed to be assets that can obtain a certain level of “stability” in a market that repeatedly fluctuates in price. However, the fact that it was not “stable” was admitted from the mouth of the tether company lawyer while being swearing in a court in New York State in the United States, and the allegations concerning the tether have become firmer to date.
・ Bitfinex is quite confusing, showing no signs of improvement …
Etheriam co-founder and Consensus CEO Joseph Rubin said there was no sign of improvement for Bitfinex.
Rubin says, “Tethers are used in a variety of organizations with the aim of making more fluid transactions, and our system is of some significance.” “There are other stable tokens. That’s good. “
“All prices on earth are being manipulated”
“So we need to build a better system,” he said.
Bitfixex has made a loss worth about 94.9 billion yen, and it has been accused by the New York Attorney General that he has compensated for the loss with a tether.
Tethers have long been questioned and not fully collateralized by dollar reserves, and are in fact only backed by 74% of the US dollar and other reserves.
The impact of reported bitfinex seems to have little impact on current bitcoin prices,
It is important to note what kind of coverage will continue!
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