Tether Traders Attempt to Unload Tokens, Leaving Noble Bank “Desperate” for Fiat Funding
The cryptocurrency market thrives on the potential for consumers to profit. While the price of tokens goes up when many investors are interested in making purchases, the opposite effect happens when a significantly high number of investors do the opposite. Unfortunately for Noble Bank, that is exactly the experience they are going through.
Noble Bank is simply focused on staying above water, but their search for funding has been ineffective. The bank maintains a significant amount of their assets in the form of Tether’s USD, but they have been going as far as to reach out to an individual with a high number of these tokens. Ultimately, they were rejected, and there has been no information about how big this request actually was.
An unnamed source commented, “If Noble doesn’t get cash soon, they will only have a few days left. They’re desperate.” Unfortunately, even though there seems to be many sources coming up, Noble Bank itself has not yet made a comment.
Even though the Tether tokens have been a stablecoin throughout the industry, they may also be in trouble. Another unnamed source spoke with Modern Consensus, stating that users have been trying to unload “tens of millions of tethers.”
As if this was not enough, two new coins that are backed by the dollar like Tether, which were released by Gemini and Paxos, are establishing themselves as adequate competition. They have even solidified their authenticity by submitting to both an audit and a regulatory evaluation by the New York Department of Financial Services. However, Tether has recently lost their own auditor in January, claiming that they find it impossible to be audited.
Noble Bank has served as one of the several banks for Tether for a few months, but they have been involved before the companies began. The CEO of Noble Banks, John Betts, was a former coworker of Brock Pierce, who co-founded Tether. Their time together involved a company called Sunlot Partners.
Tether has continued to be one of the most controversial coins that the cryptocurrency market has seen. This is only supported by the fact that over half of the Bitcoins traded with other currencies has been against Tether. Even though these coins are supported to be at 1:1 ratio with the dollar, there are rumors of selling un-backed tethers for the purchase of other tokens.
Wells Fargo has already cut off their relationship with Tether and Bitfinex back in April 2017. Not long after, Tethers began to infiltrate the market to the tune of $2 billion in 2017. After Bitcoin’s prices soared, studies suggested that the two were intertwined and rumors flew that Tether was simply a tool to control the price of Bitcoin.