Tether is one of the well-known cryptocurrencies with its price being pegged to the US dollars. However, there are several reasons which make people believe that it is risky as an investment venture. In this article, we will be seeing the various factors because of which there are apprehensions related to the cryptocurrency tether.
- Tether Limited, which is the main company behind the cryptocurrency “Tether” has not provided any information related to any auditing firm despite the fact that the company claims to ensure the stability of tether through dollar reserves. For any company which operates a currency backed by USD, apprehensions are naturally raised when people do not know about any auditing firm related to it.
- Some critics of cryptocurrency and cybersecurity experts are of the view that Tether is just a shield to manipulate the prices of Bitcoins. They also argue that new tethers are minted when the prices of Bitcoins start falling so as to bring stability to the cryptocurrency market.
- When it comes to Reddit discussion forums on cryptocurrencies, there is no response when users want to know the experience of other users related to the exchange of tether coins to US dollars.
- If you visit the official company website of the tether, then you will find that there is no guarantee provided on any kind of loss or fraud which the tether holder incurs. Or in other words, it can also be said that the holder of the tether coin will be responsible for any kind of loss of these coins.
- If you visit the terms of services section of the company’s website, you will find that the company holds the right to reject any claim for the redemption of tether tokens without mentioning any reason for it. You will not find mention of any circumstances in which they would take such action.
- Recently, a news regarding the Bitfinex and tether coin fraud circulated online and there is still no conclusive closure to this entire incident.
- In January 2018, the blockchain platform of tether took back its collaboration from a Taiwanese auditing firm which created doubts in the mind of cryptocurrency enthusiasts regarding its transparency.
If we take the above points into consideration, then it is obvious to question the authenticity of tether coins.
In the coming future, the picture might become clearer when more and more pieces of evidence would come out from both sides supporting and opposing the tether coins.
About the Author: S Kumar is a freelance article writer who likes to write on new trends like cryptocurrencies. You can reach him at cryptocurrency content writing service.