Ethereum co-founder Joseph Lubin made an assumption that why the price of Tether is going down and what is the reason behind the manipulation of Bitcoin price with Tether.
Lubin said on Yahoo Finance’s Final Round which is held on 28th August that he doubts manipulation accusations against stable coin Tether(USDT).
The tether was “the first” blockchain-powered platform that allows for the tokenization of fiat-backed cryptocurrencies founded in the year 2014.
A study was conducted by the analysts about its backing assets, Lubin is unconvinced of manipulation accusations against the token and the company behind it. He said that “based on our analysis, which involves just talking to a bunch of people in the space, we do believe that [USDT] are backed 1:1 by U.S. dollars in bank accounts” although it is “still not 100 percent solid in terms of a story, from my perspective.” He added:
“…with respect to market manipulations, I’m not sure that market manipulations are related to Tether directly if they do exist. It has been an unregulated market set of exchanges that enable big players to do what they want to do […] Ideally we’ll get a little better regulation of those centralized exchanges at least.”
In the month of June, the firm conducted an unofficial audit of Tether’s accounts, where it was discovered that USDT did indeed have enough funds to back each token 1:1 with U.S. dollars.
The firm noted in its statement that, “not an accounting firm and did not perform the above review and confirmations using Generally Accepted Accounting Principles.”
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.