The controversial stablecoin Tether (USDT) has been in the media during the last days due to different issues, including problems with Nobel Bank. Some experts even believe that this stablecoin is fading and that could soon collapse.
Tether has been accused of not having the necessary funds to back the peg with the US dollar. Additionally, the company did not conduct an audit as many enthusiasts and individuals were requesting.
The controversy has also been discussed by Danny An, co-founder and CEO of the stablecoin TrueUSD. During an interview with CNBC Crypto Trader, he said that it is difficult to tell whether the controversy behind Tether was true or not.
On the matter, he commented:
“It’s difficult to tell because there is a lot of news coming out about it but that’s informed by some information by the banks or the actual, let’s say, regulators if they issue a subpoena. So it’s something where there’s been a lot of suspicions about but there’s never been any concrete real evidence for it.”
Additionally, An talked about how TrueUSD works and how the crypto TUSD acquire its valuation. He said that TUSD is the second most valuable and important stablecoin in the cryptocurrency market.
In addition to it, he explained that the company focuses on transparency and regulatory compliance at all times. Danny An said that the company has bank accounts that are escrow accounts. The firm puts a specific amount of funds and mints the same amount of TrueUSD, matching the escrow accounts. The circulating supply should always match the circulating supply.
He was also talking about the problems experienced by Tether and how difficult it is to maintain transparency of their bank accounts when they remain part of their business mysterious. Danny An has also revealed that they avail services from the firm Conan Company.
This firm controls and verifies that the tokens in circulation are on par with the US dollars in the escrow account.
There are several figures around the crypto world that have been supporting TUSD. For example, Changpeng Zhao, Binance CEO, wrote a tweet in which he said that people should buy more TUSDT.