USDT was overissued again, Is USDT an angel or a devil?

On June 24th, Bitcoin prices hit a new low for the past six months and once fell below 5,800 U.S. dollars, with a daily decline of more than 5.5%. Nearly 70% lower than the highest point in history. And it Is the first time it has fallen below 6000 U.S. dollars since November 2017.

(data from citicoins.com)

In the face of the sudden plunge, experienced investors do not seem to worry too much, because they have experienced such a situation in the past, and in view of the history of bitcoin prices, bitcoin price can both experience soaring inflation and can withstand the collapse. Some people even began to hope that the USDT can be overissued again to save the market.

What is usdt? USDT is a crypto currency that is anchored to the U.S. dollar. Every time a usdt is issued and a U.S. dollar deposit is guaranteed in the bank. Anyway, if you also hope the market will warm up through the issued usdt, then you can celebrate with champagne. Because according to tether official data, Tether issued another 250 million usdt on June 25. Up to now. the supply of usdt exceeds $2.7 billion.

Tether was once accused of cooperating with Bitfinex to manipulate Bitcoin price through the issuance of usdt, and by summing up the data on the rise and fall of Bitcoin prices every time they were issued, it was found that every time the usdt was issued, bitcoin prices would rise. Therefore, some people claim that usdt coin is an angel to save the crash market, but more people think that usdt maliciously pushing up Bitcoin price and it is the devil who manipulates Bitcoin prices.

On June 25th, after tether issued 250 million usdts again, there was indeed a increase in bitcoin price as we expected, and the role of usdt was once again highlighted.

Usdt has always been controversial because of the problem of issuance and U.S. dollar reserves, and the issuer of usdt, tether has not been able to offer a complete bank asset certificate, proving that a usdt corresponds to 1 US dollar and there is no issue of violation of the law.

Until last week, tether finally updated its transparency report, which was released on June 20th by a legal company, FSS, and proved that as of June 1st, tether had $2.55 billion in deposits in its accounts and was stored in two separate banks. Usdt has plenty of dollars as support.

It seems that this report shows that tether has made progress in it’s information disclosure work, But there are still many doubting voices. Some people pointed out that this report did not reveal details of bank reconciliation and could not support Tether’s claim that a USDT corresponds to a one-dollar deposit. And FSS is not an accounting firm and cannot endorse tether.

I am in favor of this view, and I think this kind of questioning will have a positive effect, so that tether can provide further transparency. Of course, the safest and most reliable practice is tether can accept the audit. This is not only the best way to reveal the USDT is an angel or a devil, but also a necessary measure to maintain the order of the cryptocurrency market.