Tether (USDT) Crypto Price Manipulation Gets Ethereum’s Joseph Lubin Defense
ConsenSys' Joseph Lubin, Also Ethereum Co-Founder, Defends Tether USDT Against Manipulation Accusations
The Tether tokens are meant to be a way for investors who want to invest in a crypto token but want something stable, unlike Bitcoin. Because of this, the price of the token has been near $1 USD forever, even now that accusations are aimed at the company for the manipulation of the Bitcoin price in December 2017 and questions about not really having the money it says it does.
According to our information, Tether claims that all tether tokens are backed by USD held in bank accounts, however, the company does not publicize which banks. During the end of last year, the CFTC subpoenaed Tether and Bitfinex both, which have the same CEO, to discover more about this money.
The CFTC has even called the former FBI director Louis Freeh to use his law firm to investigate the compliance and check the banks of the company, which matched to what the company stated. He said that Tether had, indeed, $2.545 billion in two banks and that they also had $7 million cushion. Many people were not satisfied, however, and still were skeptic about Tether.
More recently, a study from the University of Texas concluded that the price of Bitcoin in December 2017 may have become so high mostly due to market manipulation of Tether.
Is Tether An Elaborate Scam? Joseph Lubin Doesn’t Think So
While many people tend not to believe that Tether is a good investment or that the company can, in fact, not be a scam, Joseph Lubin is surely not one of these people. He affirms that Tether is an interesting project and that and that he has no reason to believe that Tether is manipulated or has anything to do with manipulators.
While Lubin is positive about Tether, he is also cautious. He does not believe that the token is 100% solid in terms of a story and the company is very discreet about its assets.
About Joseph Lubin
Lubin was, together with the famous Vitalik Buterin, one of the co-founder of Ethereum. Now his company, Consensys, is developing Ethereum-based apps. He does not have any direct link with Tether.