There is perhaps no other crypto asset more subject to scrutiny and accusations of impropriety than the Tether stablecoin. The startup behind the coin has been blamed for market manipulation while its business dealings and accounting practices have stirred up many concerns. Critics argue that Tether lacks transparency, possibly engages in criminal activity and does not have the financial backing that it claims.
These accusations are somewhat vindicated by the current case by the New York Attorney General (NYAG) against the business and its owner, iFinex, which is also the owner of the Bitfinex cryptocurrency exchange. Potentially adding fuel to this, which Cointelegraph has covered in detail, was the news that Bitfinex has recently repaid $100 million to Tether that the exchange took as a loan. Simultaneously, over the past 18 months, several alternative stablecoins have emerged — and seemingly with far stronger fundamentals. Despite this, Tether remains the dominant stablecoin. So, why does Tether continue to be successful in light of the threat it allegedly presents to the industry?
Audit historyReliance on the banking systemTransparencyLegalityWaiting for a punch?TransparencyProper backingTrustlessnessNetwork effectsBlockchain agnosticism Impact on liquidity and volatilityEast Asian demandChinese and Hong Kong crisesSystemic risk to the marketStablecoin substitutionContinue Reading on Coin Telegraph