Tether is asked to Prove USDT Backing
USDT is a leading name in the cryptocurrency market because this is the biggest stablecoin that is considered as equal to 1 US dollar. This is issued by a company called tether and they already clarified that each USDT is backed by a real US dollar. This sounds good as long as it is maintained by the company because this stablecoin has a market type of more than 67 billion dollars. In the last few years, people have started showing more interest in stable points because there are many options to earn a decent profit.
The US judge asked the company to produce a financial document where it can be confirmed. I believe this is one of the important parts that the community should know and if the USDT founder company can prove that the token is backed by real dollars then I think it is also going to get more attraction by the community. So it may sound a little risky because if things do not go I should then probably we can expect more dip in the market.
There are many stablecoins including USDT and USD and all these coins are not decentralized. This means these coins are managed by a company however the company is saying that there is real dollar backing for each coin but there is no way we can verify the information. This should be available in the open domain so that anyone can go and verify but unfortunately, this is not the case. We just have to believe the company that they are maintaining the backing as long as there is no issue in the market and it can maintain the peg value that is equal to $1.
There are so many options where we can use USDT to earn a decent income and in the same pattern, UST was also offering a very good earning opportunity to the community. What happened with UST is not new for us and I think this is good learning that we need to plan things in such a way that should not be keeping a lot of fun on these stablecoins that are not decentralized. We have some coins that are decentralized and they are also doing pretty well but the market cap is not as high as we can see with these centralized coins like USDT and BUSD.
Now it will be interesting to see how the tether company about the documentation that proves that they are maintaining the real backing behind the scene. If it is not proven then it's likely to happen that the market will go down but if it happens then USDT will be able to grab more trust and this will also bring a lot of people to convert their crypto to USDT because it will be proven.
If it happens then it will be proved that this is centralized stablecoins which is not just reliable but also a trustworthy option in the crypto market. Being a part of the crypto market I think we should keep an eye on this news to see how things will turn out to be and what will be the outcome of this investigation or the question asked by authorities for USDT.
Thank you so much Stay Safe
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