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- Tether has scheduled its first quarterly statement on its reserves sometime this month.
- The report will settle its yet unresolved dispute with state regulators over the existence of reserves.
- Investors are more invested in Tether’s popularity as it exceeds Bitcoin in trade volume.
The widely-used crypto stablecoin Tether recently exceeded $50 billion in circulation, a volume much greater than the insured deposits at all but 44 of the thousands of U.S. banks, reported the global business and markets news provider Bloomberg on Saturday.
Tether’s Plans and Controversy
Tether has scheduled its first quarterly statement on its reserves to the New York Attorney General sometime this month, confirmed Stuart Hoegner, general counsel at the crypto exchange Bitfinex and Tether.
After its launch, the tokens were claimed to have been backed by 1 USD each, which it never substantiated. The two primarily British Virgin Islands-based companies, Bitfinex and Tether, neither denied nor admitted to any misconduct when questioned. Years of debate and lawsuits later, in 2019, when the settlement was announced, New York Attorney General Letitia James stated that Tether’s claims of the “virtual currency” being “fully backed by U.S. dollars at all times was a lie.”
The Quarterly Report
Thus the report is expected to settle Tether’s yet unresolved dispute with state regulators over the existence of reserves.
However, it’s unclear whether the disclosure will be available to its investors. On the other hand, investors seem more invested in Tether’s popularity as it exceeds the volume of market leader Bitcoin, becoming the most traded cryptocurrency globally.
Market Appreciation of Tether
Nic Carter, the co-founder of researcher Coin Metrics, views Tether as “the main collateral and margin type” at “offshore exchanges.” Traders “often prefer a stablecoin like Tether” to gain access to the crypto exchanges with flying “exchange volumes.”
According to data tracker CryptoCompare, 66% of Bitcoin is bought using Tether. And with Coinbase planning to include its trade on the largest U.S. crypto exchange platform, the stats are most likely to accelerate uninterrupted.
Hurdles Won’t Push It Back.
Even though the controversial settlement issues originated many hurdles for Tether, it’s doing well with the surge following the announcement. Irrespective of what the report reveals, the market participants anticipate the positive momentum to continue. In Multicoin Capital’s co-founder, Kyle Samani’s words, “the fact that Coinbase added it tells you everything you need to know.”
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
