Longhash report: Despite its controversies, Tether is "extremely healthy"

18 Jun, 2019
by Richard Allen
News
Longhash report: Despite its controversies, Tether is extremely healthy

Tether has been at the center of a number of controversies over the past several months. At the end of last year, the company was facing allegations of lacking a one-to-one backing as well as being tangled in the Bitfinex debacle. However, a recent report by Longhash suggests Tether is “extremely healthy.”

As per the report, Tether has been granted a health score of 90 out of 100, marking it as “extremely healthy.” Longhash arrived at the score by using five metrics (stability, market acceptance, risk resistance, growth, practicality) to analyze the token’s health. The report notes that Tether performed well on every metric except practicality.

Gemini Dollar (GUSD), the second-highest ranking coin, received a total score of 78 and beat Tether in both stability and practicality. However, there’s room for improvement in market acceptance and growth, two areas Tether did better.

The report notes that when the New York Attorney General’s report implicated Tether in covering up Bitfinex’s $850 million loss, the stablecoin saw a brief dip. According to the report, this stands as a testament to Tether’s ability to weather a storm.

The report goes on to describe Tether as “concentrated” since more than half of its distribution is on Binance. While its supply didn’t receive a great rating, Longhash state that it fared far better than its competitors – namely, GUSD, Paxos Standard (PAX), USD Coin (USDC), and True USD (TUSD).

The report concludes by stating that the actions of iFinex, Tether’s parent company, may result in the eventual collapse of USDT, but it should be okay for the time being.

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