I have not been following Tether too closely, but hear it was hacked. Is it the case that Tethers must be held with the Tether institution - and that people cannot have their own local wallets? Is that not a major design vunerability, over and above the potential vunerability of the banking system on which Tether relies?
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It was hacked and thet lost like 50m worth of tethers.
They are trying to isolate the compromised addresses.
But rather than that there is no guarantee or no evidence so far that they have the fiat reserve they claim to have.
They ll have an audit soon it seems.
We ll see.
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Tether has a lot going on right now. The recent ‘hack’ of their multi-sig address caused ~30 milion USDT to be sent to an address, which was blacklisted. There is also a lot of chatter and speculation that they are running fractional reserves, and pumping up the BTC price. I don’t think one can claim it to be a fact yet, but they haven’t had a public audit in the time since they’ve added nearly $1 billion to their USDT circulation.
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Why doesn’t Tether sell for 99 cents? That is near enough one dollar for most people, and they can keep 1% as commission, and so make money - everybody’s happy
Why endanger it with a one dollar price that prevents them from making money?
I think tether was created to benefit Bitfinex liquidity, and not as an independent venture to profit.