It seems the controversy surrounding Tether continues. The bank reportedly storing $1.8 billion for the altcoin has gone silent.
Is There a Banking Relationship?
At the beginning of November, the troubled stablecoin announced a new banking relationship with the Bahamas-based Deltec bank. This was made through a blog post on the company’s website.
Prior to the announcement, Tether was receiving negative press. As a stablecoin, the USDT is supposed to be pegged to the U.S. dollar, equalling 1:1. However, in recent weeks, the value of Tether has dropped below $1. At the time of writing, it is valued at $0.99, according to CoinMarketCap.
At the end of October, the company burned $500 million worth of tokens after a major sell-off by its traders and holders. According to an announcement, it’s possible that FUD may have triggered the action after rumors suggested that major exchanges were going to delist USDT.
Yet, after publishing a letter, supposedly from Deltec bank, that relationship is now coming into question. The bank itself has failed to confirm or deny whether it’s true, reports Bloomberg.
Is the relationship true? Or is this just a ploy by Tether to come across as legitimate following its negative press?
The fact that no one at the bank has provided comment is one red flag to consider. The second being there is no name along with the illegible signature in the letter. The plot circulating the so-called stablecoin continues. It’ll be interesting to see what happens next. For now, though, this isn’t doing anything to help its credibility.
Notably, though, while the stablecoin continues to be shrouded in mystery, it hasn’t done much to impact the price of Tether. It may no longer be valued at $1, but it’s not far off. Will it move back to $1 again? Only time will tell.
For now, however, the USDT is raising more questions than answering them.
Market in the Green
For what may seem like a long time, the crypto market is trading in the green today. At the time of writing, the combined market cap is valued at $211.6 billion.
The biggest mover in the market lies with Bitcoin Cash, which has seen a more than 30 percent rise in seven days. The fourth most valuable altcoin is expected to see a hard fork on the 15th of November; however, the price rise may be down to the fact that crypto exchange Binance announced its support for it.
How do you think the hard fork will impact the price of Bitcoin Cash? What’s going on with Tether? Let us know in the comments below.
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