Controversial Tether hits the crypto news again only five days after losing its US dollar peg.
The people who are defending tether claim that supporters of other stablecoins are making a coordinated assault on tether which brings FUD in the entire crypto space. However, Mike Novogratz believes that the reason for the loss of the USD peg comes as a fault of the issuer’s lack of transparency.
“I think Tether didn’t do a great job in terms of creating transparency.”
He explained his stance on a conference held in Frankfurt this Wednesday where he especially called out the token’s creator Tether Limited, for operating offshore and being very wary of its financial relations.
Currently, Tether is now believed to be banking with the Deltec Bank after teaming up with the Puerto Rican institution Noble Bank. However, none of these relationships have been confirmed in the public.
Novogratz also noted that he prefers some of the other stablecoins such as Gemini Dollar issued by the Winklevoss twins. This is because Gemini’s assets are housed in a USA-based bank and also the issuer received approval from the New York Department of Financial Services. Gemini has also been evaluated for its monthly attestation reporting that the token is always fully backed by the US dollar.
He also believes that the newer stablecoins are ideal for transactional exchanges.
Novogratz believes that the USDT is always fully-backed by physical dollars and stressed that the competition within the stable coin market is growing immensely.
“Id like to put context to these quotes as the last thing I want to do is spread FUD. I said I thought tether has a dollar for every tether and that we actively traded it. The fact that almost $700mm has been redeemed in an orderly fashion is important,” said Novogratz.
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