Independent Ratings Agency Alerts Investors About Dangers of Tether

Independent Ratings Agency Alerts Investors About Dangers of Tether

Another outside observer of the controversial tether cryptocurrency is warning about the dangers it presents for the uninterrupted operation of USDT exchanges. Weiss Ratings is seeking to educate investors on the systematic risk tether introduces to the ecosystem.

Also Read: Faced With Criticism IOTA Fans Try to Bully Growing List of Detractors

Inherent Risks of Blind Trust

Independent Ratings Agency Alerts Investors About Dangers of TetherWeiss Ratings, an independent U.S. agency which recently published letter grades for cryptocurrencies, has issued an alert to investors about the dangers of tether (USDT). It highlights common fears about the stablecoin which is claimed to be fully covered by U.S. dollar reserves.

“The big issue: There’s never been an audit, and the folks behind Tether has been quite shady when asked. They have continuously claimed their tokens are backed 100% by actual dollars, yet they have failed to present any evidence to support this claim. On social media, there appears to be consensus that what Tether is actually doing is running a fractional reserve system. In other words, most observers claim they DO NOT have the dollars to back up all those Tether coins. I tend to agree. It’s just too suspicious,” says Weiss analyst .

What Happens When the Feds Stop USDT Printing?

Independent Ratings Agency Alerts Investors About Dangers of TetherWeiss explains how the importance of USDT to the entire ecosystem is that many non-fiat exchanges (like Binance or Okex) use it as a proxy for real dollars in trading. Because of this, it is the third most traded cryptocurrency and the only one with trading volumes that regularly exceed its market cap. These exchanges are thus dependent on tether for liquidity and put investors at risk if any government decides to pull the plug out of its printers. Some consider this to be a likely scenario under U.S. law.

“The consequences of hanky-panky could be far-reaching. What happens if Tether does turn out to be fraudulent? Or what happens if a major government determines that cryptocurrencies like Tether are being used by exchanges to avoid regulations? What if this large source of liquidity suddenly evaporates?” asks. “Conceivably, it could cause exchange failures. It could drive investors to liquidate their positions, causing sharp declines in market prices.”

Should cryptocurrency investors worry about the continued liquidity of USDT exchanges? Tell us what you think in the comments section below.


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PR: Crypto Backed Loans Platform MoneyToken Has Announced the Private Sale

Crypto Backed Loans Platform MoneyToken

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.

All of us were thrilled by the MoneyToken’s advances and successes recently.

During the last several months, the team has achieved a lot: applied for a crypto-backed loans patent, announced Amanda AI loan assistant, and finally – almost finished their MVP development.

MoneyToken has announced the Private Sale, which is meant to start on February 7th at 15:00 UTC. 1,75% of the total token supply will be distributed with +40% bonus during the Private sale.

To gain access to the Private Sale, all users should join the MoneyToken Whitelist

MoneyToken MVP is also expected to launch at the end of Q1 2018.

What is MoneyToken?
MoneyToken is a Blockchain-based Financial Ecosystem, which consists of:
MoneyToken lending platform that provides loans in fiat currencies or stablecoins, secured by collateral in BTC and ETH
MTC – MoneyToken’s own stablecoin
MoneyToken decentralized Exchange service

What problem does MoneyToken solve?
The problem has been obvious for some time – spending crypto assets today removes the ability of an investor to benefit from any future growth in value; investors who buy low need to hold on to their assets in order to benefit from selling high.

This is where MoneyToken steps in. The MoneyToken platform allows you to borrow liquid funds instantly, based on the current value of your cryptocurrency asset holdings. You take out a loan, collateralized with more volatile assets such as Bitcoin or Ethereum — and in return you receive an agreed loan amount in a stable currency. After the loan repayment, you will receive your whole collateral back, even if it has increased in value many times.

In the end, you’re able to acquire liquid funds, save your crypto position and stay in the investment game in the long run.

With MoneyToken, there is no reason to sell your BTC when you need liquid funds.

Telegram link: https://t.me/moneytoken
Bitcoin talk: https://bitcointalk.org/index.php?topic=2715866.0
YouTube: https://www.youtube.com/c/MoneyToken

Contact Email Address
james.hendersonmt@gmail.com
Supporting Link
http://moneytoken.com/#whitelist

This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

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