Ethereum co-founder doubts Tether manipulation

30 Aug, 2018
by Will Heasman
News
Ethereum co-founder doubts Tether manipulation

Ethereum Co-founder Joseph Lubin has told Yahoo finance that he doesn’t buy the accusations of manipulation against stablecoin, Tether (USDT).

Tether has been at the center of allegations involving falsifying of accounts and manipulation for quite some time.

Tether operates as a fiat backed cryptocurrency ‘tethered’ to the US dollar 1:1. Many disbelieve that they have the fiat backing they allege to have. This accusation led to the Tether team arranging a quasi-audit to have their bank deposits confirmed. This confirmation was still not enough evidence for some. However, it seems to be enough for Joespeh Lubin who said:

“based on our analysis, which involves just talking to a bunch of people in the space, we do believe that [USDT] are backed 1:1 by U.S. dollars in bank accounts”

Allegations of Tethers market manipulation arose as there is often a correlation between the expenditure of USDT and pivotal moments of price action for Bitcoin. Lubin was similarly dubious about this theory, stating:

"...with respect to market manipulations, I’m not sure that market manipulations are related to Tether directly if they do exist. It has been an unregulated market set of exchanges that enable big players to do what they want to do … Ideally, we’ll get a little better regulation of those centralized exchanges at least.”.

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Read more about: Tether (USDT)

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