Tether’s Lack of Fiat Backing Could be Catastrophic for Bitcoin, Analyzing USDT’s Troubling Terms of Service186

Tether, the market-leading stablecoin in both market capitalization and controversy, made changes to its legal terms of service that indicate that USDT is not fully backed one-to-one by US dollar reserves. Instead, the new terms suggest that USDT is backed by other assets including loans made to third parties, calling into question the soundness of Tether’s reserves.

Tether and its associated exchange Bitfinex have been the subjects of immense controversy. Tether underpins billions of dollars worth of value in the cryptocurrency markets through its widely used stablecoin USDT—and if Tether is providing loans, the amount could be even higher.

Original source
https://cryptoslate.com/tethers-lack-of-fiat-backing-could-be-catastrophic-for-bitcoin-analyzing-usdts-troubling-terms-of-service/

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