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Tether increases amount of USDT in circulation amidst fears of USD backing reserves

Tether cryptocurrency whose token is USDT, tethers every USDT for one dollar of a reserve. And preferably in a 1:1 ratio of USDT to USD. Suspicion is growing because it has printed a total of $700 mln USD worth of USDT in January so far.

Some are claiming that with this high amount of money in circulation; it is possible that Tether does not have any backing of a dollar for every USDT as declared.

For instance, a prominent claim by Stock Emperor is that the amount releasing in circulation this month exceeds the total amount of money printed by US government which is around USD 540 million.

Stock Emperor came up with the figures based on a claim that Tether has been printing a total of USD 100,000,000 worth of USDT. Since it was on January 4, 14, the from 16 to 20. The information was provided by @TetherPrinter. The Twitter account that tracks the number of tether grants issued on the Omni blockchain.

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They also claim U.S. Federal Reserve prints $27 million new notes daily (though it prints $541 million daily 95 percent goes to replacing old and worn out letters). More information unveils that Tether could have stacked the money in offshore accounts.

Besides, suspicion furthers by the fact that they haven’t had an audit performed on their finances. And also on how it compared to the USDT token balance. Tether had promised to have the review in December last year. But has not yet published audit information on the same.

Besides, they had released an audit in March last year, which shows near million dollar discrepancy between its USD holdings and amount of USDT in circulation.

Some documents also came to surface last November that Bitfinex and Tether are just but sister companies with overlapping ownership. This is according to Paradise Papers, which are confidential electronic documents relating to offshore investments. There were earlier suspicions about this because new printed USDT sends to Bitfinex.

Also, many have observed that Bitcoin prices go up whenever new USDT is deposited into- Bitfinex exchange. In other words, the tokens are in use to buy Bitcoin and this increase in price causes more investors to buy.

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Sara Noah

Sara Noah is steadily working on cryptocurrency evaluations, news, and fluctuations in digital currency prices. She is guest author associated with many cryptocurrencies admin and contributes as an active guide to readers about recent updates on virtual currencies.

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