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Tether is Owned by Scant Experienced Founders, Says Report

Published 02/03/2023, 02:52 AM
Updated 02/03/2023, 03:00 AM
© Reuters.  Tether is Owned by Scant Experienced Founders, Says Report
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  • Tether is reportedly controlled by a scant experienced bunch of founders.
  • These founders control 86% of Tether holdings.
  • The documents that back the claims were shared by the Wall Street Journal.

According to a recent Wall Street Journal article, new information about the founders and owners of Tether holdings have emerged. The documents reviewed by the WSJ revealed that the $68 billion stablecoin empire is allegedly run by a bunch of founders and owners with inadequate experience in financial terms.

The report also illustrates that one of the founders was earlier a child actor who turned into a cryptocurrency investor, and another was an ex-plastic surgery practitioner who then steered his way into electronics and then cryptocurrencies.

The documents also revealed that the group of four men controlled over 86% of tether holdings. The stablecoin empire has also been quite confidential in terms of its ownership structure.

However, tether has managed to remain robust throughout the bear market of 2022. The hard fall of Terra’s UST had ramifications, particularly for stablecoins. The trust that people vested in stablecoins to maintain their peg was also deteriorating after UST’s fall.

The whole purpose of stablecoins is to maintain their peg despite market volatility and customer withdrawals. ...

The post Tether is Owned by Scant Experienced Founders, Says Report appeared first on Coin Edition.

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