What is the Tether coin? and why is it considered a scam?
Elementally, as we all know, Tether is one of the most prominent cryptocurrency coins, whose value is pegged to that of US dollars. This, in simple words, notes that 1 USD = 1 USDT. It is also one of the most speculative for mixed reasons. Below some of them.
1. The company that supports Tether, Tether Limited claims to secure the stability of the Tether coins, through actual dollar reserves, but not even a single independent auditor has confirmed it, recently. The token offer also continues to increase regularly. Therefore, speculations are always on the higher side of the spectrum when it comes to the legitimacy of the Tether currency.
2. Many cryptocurrency experts speculate that Tether is a fraud because it is not considered a legal tender. This indirectly made the enthusiast of Crypto to indicate the legal status and transparency of the Blockchain project.
3. According to the majority of cyber security experts and cryptocurrency critics, it has been announced that Bitcoin prices are being manipulated by the USDT or Tether currency. It is assumed that the Tethers are coined only during the fall of Bitcoin prices, in order to stabilize the cryptocurrency market and are not fully supported by millions of Fiat reserves. Even the most popular economist, Nouriel Roubini, believes the same.
4. Reddit is one of the most popular cryptocurrency discussion forums. On this website, when users wanted to get an opinion about any previous user's experience in converting Tether coins into current US dollars. A deafening silence loomed over the pole, which certainly indicated the opacity of the cryptocurrency currency.
5. According to the company's website, officially, no guarantee is given for the reimbursement or any type of losses incurred by users. Indirectly, the user is the only responsible person for all these actions with respect to the Tether currency.
6. Furthermore, according to the company's terms of service, the collection Tether token may be refused without mention of an exclusive reason. This is a big problem with open legal documents, as they do not bother to mention the circumstances in which they would do so.
7. There are also a number of examples that indicate the fraudulent nature of Tether coins. As in January 2018, the Tether platform of the Blockchain currency withdrew its collaboration with a third party audit firm from Taiwan.
8. It is also estimated that the Tether coin Blockchain platform can change many audit firms in different countries.
9. Bitfinex is the exchange of cryptocurrency, which is constantly speculated to be part of the Tether currency fraud, since many prominent figures of Bitfinex had represented Tether during his initiation. Because of its connections with Bitfinex, it is also said that Tether coins are used for the margin loan on Bitfinex, in an illegal way.
10. It is important to know that Crypto's exchanges are profitable from the borrowed Tether coins. This is extremely ridiculous, as Tether Limited does not provide a guarantee for the redemption of Tether coins with the actual currency of Fiat.
The Positive Side of the Tether Coin
A myriad of Crypto exchanges like Binance, Bitfinex, Poloniex, etc. They incorporated Tether instead of actual US dollars, as the integration of the USD would require many legal procedures to be followed by exchanges. Therefore, Tether effectively eliminates the government's legal intervention. Adding to the upper hand, they even provide the highest transaction speeds compared to that of the Fiat currency. Therefore, it is also used as an alternative to US dollars.