Tethered To What?

tether USDT USD audit terms of service

Tethered To What?

The internet has been awash with talk of the recent update to Tether‘s terms of service. It was quietly updated on the 26th of February and announced via a recent Reddit post.

 

tether USDT terms of service reddit

 

Not only is it in the statement in their terms of service but also on their homepage.

 

” 1.1.32 “Reserves” means 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;” -https://tether.to/legal/

Dodgy Loans

So what exactly do they mean by ”may include other assets and receivables from loans made by Tether to third parties, which may include affiliated entities”? It sounds like they are admitting to the fact they‘ve been loaning US dollars to related parties for some time. I think there‘s a good chance that one of those related parties is Bitfinex.

I‘ll be honest with you, I‘m not a fan of USDT. There have too many red flags and questions gone unanswered. Tether sacked their auditor back in early 2018, citing ”excruciatingly detailed procedures” as the reason for the decision. Bitfinexéd published a superb analysis of the decision.

 

tether USDT audit bitfinex

 

What did Tether say about the recent update to their terms?

In a statement to The Block:

”Our most recent revisions were intended to update our disclosures to reflect Tether’s growth and operations and to be consistent with the types of disclosures used by other institutions… The only change is that the composition of the assets that provide that backing includes a combination of cash, cash equivalents, and may also include other assets or receivables from loans issued by Tether.” -Tether (abridged)

Having confidence in an asset-backed token requires:

1. The issuer holds the amount of assets they say they do

2. The assets are in the form they say they are

 

tether USDT terms of service tos tweet

 

Loans to affiliated parties, or any party, will be far less secure than having the cash in the bank. Tether should not be making money on the side with dodgy loans to their friends or other investments. It is to provide a secure stable coin, and that should be the only thing they focus their activities on.

Tether should restore faith in USDT by stating what those loans and investments are. An audit is urgently needed too. There are so many new stablecoins on the market now that provide far greater transparency and assurances than Tether does.

Your move, Tether.

Ross Carter-Brown

Read moreTethered To What?

Top 10 Performing Cryptocurrencies so far in 2018

Top 10 Performing Cryptocurrencies

Crypto Corrections in 2018

During 2018 we have seen substantial corrections in the price of all cryptocurrencies. Many who were hoping to get rich quick have jumped off the crypto train as prices started crashing at the beginning of the year. On the other hand, some experts are viewing this as a typical market cycle, and crying “HODL! HODL”.

 

Ranking Cryptocurrencies

Whatever the case, everybody loves to rank things, and crypto is no exception. There are many ways to rank the top cryptocurrencies. From market capitalisation, or price per coin, to largest blockchain company by value. In this article, we aim to rank the ten cryptocurrencies with the highest 30-day trading volume by the percentage change in value from January 1st – July 29th, 2018.

 

Important!

Please note, this ranking is intended as informational only. Do not take this article as financial or investment advice. Always be sure to do your due diligence first.

 

Top 10 Performing Cryptocurrencies of 2018

Name Start Price (NZD) Current Price (NZD) % Change Volume (30d) Official Site
Tether (USDT) 1.49 1.47 -1.34 $119,282,930,189 https://tether.to/
EOS (EOS) 12.93 12.22 -5.49 $30,309,128,868 https://eos.io/
TRON (TRX) 0.066 0.054534 -17.37 $7,831,582,983 https://tron.network/
Ethereum (ETH) 1114.03 688.26 -38.22 $71,069,176,792 https://www.ethereum.org/
Ethereum Classic (ETC) 41.35 25.02 -39.49 $10,067,134,434 https://ethereumclassic.github.io/
Bitcoin (BTC) 20,802.09 12,073.84 -41.96 $192,944,413,585 https://bitcoin.org/
Litecoin (LTC) 341.49 123.8 -63.75 $12,501,191,132 https://litecoin.com/
Bitcoin Cash (BCH) 3,736.45 1,204.09 -67.77 $22,011,581,509 https://www.bitcoincash.org/
Dash (DASH) 1,553.75 356.8 -77.03 $7,432,161,863 https://www.dash.org/
XRP (XRP) 3.39 0.669152 -80.26 $10,522,284,882 https://ripple.com/xrp/
  • Start Price = Price per coin as of 1st Jan 2018.
  • Current Price = Price per coin as of the time of writing (29/07/2018).
  • % Change = Percent difference between Start Price and Current Price.
  • 30 Day Volume = Total monthly volume in NZD traded 30 days before and including 29/07/2018. 

 

Why it is Essential to Perform Your Own Analysis

Always remember that cryptocurrencies are representations, aka tokens, of an asset or a value within a network. The success of that network depends on a plethora of factors such as community participation, platform development, use cases, etc. Relative to the traditional stock market, cryptocurrency is in its infancy. It is absolutely essential to perform your own research when thinking of buying crypto. This research mimics what was mentioned in our ICO blog, such as reading whitepapers and researching the development team. At BitPrime, although we are unable to provide financial advice, we are more than happy to offer help setting up wallets or pointing you in the direction of useful, general resources. If you do have questions, please contact us. Otherwise, feel free to check out our other posts on cryptocurrencies and the blockchain technology behind them.

 


Disclaimer: The above references an opinion and is for informational purposes only. Do not take this as personalised financial or investment advice. The opinions expressed by the author do not represent the opinion of BitPrime.

Last updated: 29/07/2018

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