Executive Summary: What Is Tether? The Company Behind USDT
In this article, I explore Tether, the company behind the popular USDT stablecoin. I cover its recent plans to accumulate Bitcoin, its founders, how it generates revenue, and the numerous controversies surrounding Tether.
Summary: Tether is the company behind the popular USDT stablecoin that has announced accumulating Bitcoin reserves, but it has faced many controversies over its reserves, business practices, and potential market manipulation.
Tether accumulating Bitcoin:
- Plans to buy BTC with 15% of net profits to diversify reserves
- Claims it believes in BTC's long-term value proposition
- Raises questions on whether good for Bitcoin or Tether becoming a whale
Tether's company structure:
- Founded in 2014 by Brock Pierce, Reeve Collins, and Craig Sellars
- Owns Bitfinex exchange, run by CEO JL van der Velde and CTO Paolo Ardoino
Tether's reserves:
- Claims fully backed by cash, cash equivalents, other assets
- Shifted from commercial paper to mostly US Treasury Bills
Tether's revenues:
- Fees for issuing and redeeming tokens
- Interest income from lending reserves
- Gains from investing reserves
Controversies:
- Accused of lying about reserves, printing tokens, market manipulation
- Investigations found issues with audits, reserves, connections to Bitfinex
Full article:
What Is Tether? The Company Behind USDT | CoinMarketCap
A deep dive into Tether, the company that issues leading stablecoin USDT, and recently announced it will be buying Bitcoin every month.
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