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Tether’s (USDT) Website Dilutes USD Backing Claims, Community Is Alert

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The developers behind the stablecoin and dollar-pegged altcoin Tether (USDT) have drawn a lot of scrutiny today after many social media users noticed that Tether has removed previous claims that the altcoin was fully backed by the USD currency. This topic has emerged in the crypto news today.

However…

This is not the first time for people to point their fingers towards Tether (USDT). The cryptocurrency has had some hurdles over the transparency of its holdings and had guaranteed that each of the USDT tokens had an equivalent of 1 USD in the bank.

USDT was even labeled as “the opposite to fractional reserve banking” with documents further confirming the validity of Tether’s backing claims. However, a new update (unknown date) to its website suggests that USD holdings no longer cover the full supply of USDT.

“Every tether is always 100% backed by our reserves, which include traditional currency and cash equivalents and, from time to time, may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities.”

One of the such affiliated entities is the cryptocurrency exchange Bitfinex which shares leadership with the Tether stablecoin.

The Reddit field is also full of comments when it comes to Tether (USDT). One commentator there took issue with backing by anything other than USD, which they suggested compromises the entire coin’s legitimacy.

As one user with a handle u/Toyake (who also uploaded the topic) summarized:

“I guess we’re back to trusting 3rd parties, running fractional reserves, to run the market.”

A popular response even drew multiple parallels between Tether and the defunct alleged ponzi scheme BitConnect. Tether had not issued any official comments on the allegations at press time. Earlier this month, however, officials reached an agreement with the blockchain network TRON to use USDT as the platform’s native token on the end of Q2 of 2019.

 

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Tether Limited Launched Gold-Backed Stablecoin On Ethereum

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Tether limited launched
Tether Limited launched a new type of stablecoin that is pegged to gold and it is issued on the Ethereum network but also on the Tron one as we are reading more about it in the latest tether news.According to the latest announcement, the company behind the most controversial stablecoin, Tether Limited launched a new digital asset. Ticked XAUt is the new token that represents one troy fine ounce of gold on the London Good Delivery bar. All of the holders of the new stablecoin will be able to obtain undivided ownership rights to the gold of the previously mentioned gold bars. The gold that gets allocated will be identifiable with a special serial number, purity, and weight as per the announcement, and the XAUt holders will also be allowed to check the details of the gold bars that were associated with the addresses over their website at any given time.The XAUt token will also be available as an ERC-20 token on the Ethereum network and as a TRC20 token on the TRON blockchain. The idea of owning a gold-backed token could sound really interesting but the barrier to entry for XAUt seems a little too high. If you want to purchase Tether Gold, you would have to get a verified account with the company that is behind the token or TG Commodities Limited. There’s a minimum purchase amount that is equal to 50 XAUt which is about 50 fine troy ounces. By comparing to the recent price, this reaches up to $75,000. The users will also be able to purchase it only with US dollars. There’s no custody fee but all of the owners will have to incur a one-time25 basis point fee when the first purchase the token from the community.Looking further, if a user wants to redeem the tokens for the physical gold, he has to have at least one full bar of gold worth of tokens just to request the redemption but if he doesn’t have enough tokens, the company says they will usually request a deposit of 430 tokens in order to ensure that a full bar of gold is matched. In regards of trading, the announcement states that the tokens will be tradeable on exchanges and can be fractioned down to small portions that the exchange will permit.
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PornHub Models Will Be Paid In Tether Through Tron Wallet

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pornhub models
PornHub models can now choose to be paid in Tether for their pornographic performances and among the top payment methods, this one is the newest along with the help of the Tron cryptocurrency wallet so let’s read more in today’s Tether news.Pornhub has updated its list of payment methods and announced the decision for the PornHub models in their blog post saying that they can also pay the models via the adult industry payment app called Comso Payment. The new opportunities come as a response to PayPal giving models this decision to choose between payment methods two months ago and stopped all payments made to adult industry performers.The payments will be made directly from PornHub to models through the TronLink wallet which is a cryptocurrency wallet app designed for the assets running on the Tron protocol. The controversial stablecoin Tether is tied to the US dollar and was recently moved to the TRON blockchain from Ethereum and before that the stablecoin was built on the Omni-layer bitcoin. The pornography website also offers the models a short tutorial on how to use the new technology and how to set up a wallet and generate a mnemonic phrase. The entire porn industry is often the place where technologies find their solid ground. It happened for the VHS and it happened again for the DVD so the porn industry was even then the deciding factor for the customers.The porn industry could help bring the cryptocurrencies to the forefront by educating the people and its users in general on the existence and use. The fact that the adult industry is often surrounded in secrecy makes it perfect for the crypto adoption to happen slowly but surely. Bitcoin was even the coin that saw much of its early adoption taking place via the Silk Road dark web marketplace where drugs, weapons, and other stuff could be purchased illegally using the cryptocurrency. Unlike Silk Road, PornHub is among the top 50 largest websites in the world ranked globally since there are millions of users every day that visit the platform. If platforms like this one bring visibility to the crypto assets such as Tether and Tron, this could mean a lot for the entire crypto industry.
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Tether Seems To Be Okay With The Merged Lawsuits Against It

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Tether seems to be
A new update is in the Tether coin news today showing that the stablecoin is currently facing multiple lawsuits and recently received a request from prosecutors asking for consolidation - or combining three lawsuits into one. Even though this does not put the stablecoin in a good position, we can see that Tether seems to be okay with it and has not denied the consolidation request.
“We did not oppose the plaintiffs’ requests to combine these frivolous claims, originally filed, respectively, in October in New York, in November in Washington and in January in New York,” is what a recent Tether statement from Jan. 17, 2020 shows.
For those of you who don't know, there are many parties which suspected Tether (USDT) alongside its related exchange Bitfinex, of foul play numerous times over their existence. Tether seems to be okay with it - even with one of the most recent ordeals on the subject that Tether and Bitfinex allegedly caused the Bitcoin bull run of 2017 by carrying out illegal activities.The legal counsel for the lawsuits from Leibowitz, Young and Faubus filed a letter with the judge on January 16 requesting a merger of the three disputes. The letter also included that the mentioned lawsuits overlap in multiple areas and have similarities which is why the case allows for consolidation.As a result of this, even three lawsuits against the stablecoin surfaced but Tether seems to be okay with them - even though they might be combined in a single prosecution now. Despite the fact that the combination may give the lawsuits more strength, Tether will probably defend itself at best in court.Tether seems to be good with this and in the latest crypto news, the team gave a statement which read:
“A fourth class action was also filed in New York yesterday, which we expect will be consolidated with the previous three actions. None of these cases present meritorious claims.”
Additionally, Tether claimed that the research by the prosecutors is incorrect, adding that it "deploys preselected data to retrofit a desired narrative and demonstrates a patent misunderstanding of the cryptocurrency market." 
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Hotel Booking Platform Travala Now Accepts Payments In USDT

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The hotel booking platform Travala has just started accepting payments from the most controversial crypto platform Tether and its USDT token so let’s read more in the latest Tether news.Just a few days ago, Travala announced that Tether (USDT) is now a valid form of payment along with its two million linked properties when the CEO of the Hotel Booking platform Matt Luczynski said:
 “Part of our mission is to provide our users with a wide choice of the most well known and used cryptocurrencies so it made perfect sense for us to integrate USDT as a payment option on Travala.com.”
Furthermore, Travala now also accepts payments of Bitcoin, Litecoin, Ethereum, XRP, Binance Coin, Stellar, Cardano, Bitcoin Cash as well as their own coin AVA. Tether joined the crypto market in 2017 and the stablecoin promised to avoid the price fluctuations with the help of the one-to-one ratio with fiat currency while the merchants showed that they are eager for the Hong Kong-based coin. According to the announcement, the addition of Cardano appeared to catch the foundation by surprise.The booking site which started on the NEO platform initially before switching to Binance’s chain at the start of September didn’t shy away from the ambition to boost the mainstream use of cryptocurrency just when it moved to BinanceSean Mackay, the lead operations at PaymentsSource which is a financial services resource stated:
 “Merchants used to accept Bitcoin, Ethereum, Ripple and convert it into Tether in order to hedge against the volatility. Now we are seeing the payments just being done directly in Tether.”
In April 2019, the New York Attorney General Letitia James charged the parent company of Tether, Tether Limited, of colluding with the parent company iFinex for using Tether’s reserve funds to cover the loss of more than $850 million in client and the corporate funds from the BitFinex crypto exchange which eventually undermined the claims USDT to stability based on the USD reserves. Despite the legal disputes with iFinex and having the fifth-highest market cap, Tether continues to see the highest daily and monthly trading volume and it now holds a 24-hour trading volume of nearly $26.5 billion surpassing that of Bitcoin’s $22.5 billion.
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