The main stablecoin of the crypto market, the tether, still growing in adoption, but the issue about their funds remains unanswered. An article published by Bloomberg analyzed the situation of tether and raised topics about the investigation of their funds. The Tether company ensures that the cryptocurrency backed in American dollar has funds to guarantee the equivalency of one dollar to each tether released.
Recently, the U.S. Commodity Futures Trading Commission (CFTC) started an investigation to verify the funds of tether. The Tether company has difficulties to keep his bank accounting, losing his account in a Thai bank in 2017. Besides that, the company promised to do official audits in his own accounts, but it never happened. Therefore, many rumors and fears about this stablecoin began to be spreaded in the crypto market.
The reserve of stablecoins
The Tether company and the Bitfinex exchange owns to the same executive group, existing the possibility of capital loan. The growing of the coin adoption, mostly part, happens with the investors trust. Both the crypto technology and the Tether business model have transmitted security to its users. These features attract the investors trying to escape of a volatility time.
Although the lack of evidence for reserves may cause concern in some investors, many do not bother. The traditional banking system does not operate with exact reserves equivalent to the deposit of each customer. All stablecoins grows in adoption and tether leads this segment. Certainly, it requireds a minimum reserve to withstand times of crisis, so it is important to continue to pressure Tether to open the company to auditing and government regulation.