Im sure most of us know exactly what Tether is by now.
But for those who don't let me explain.
Tether is theorhetically one of the most stable crypto currencies because of its idea for implementation.
"Tether, the tech company, with the self-titled coin, Tether, wanted to make access to the cryptocurrency exchanges much easier to access.
Their solution was a coin that could be used across multiple exchanges, and have a consistent value, $1.
Going further, their idea was to have 100% of the Tether tokens to be backed by U.S. Dollars.
Meaning that if they print 100 Million Tokens, then 100 Million Dollars would held in liquid form ready to be paid out to traders who want to claim cash for their Tokens.
This is where the story starts to get interesting.
Since its inception, Tether has always claimed 100% transparency.
Although those claims have not been disproven, talks about the legitimacy of those claims has come in to the light.
AUDIT TIME!!!!
The auditing partner Friedman LLP, has recently decided to disband their relationship with Tether, as stated in the article below.
http://www.businessinsider.com/cryptocurrency-tether-splits-with-its-auditors-friedman-llp-2018-1
According to Tether Corporate, because of the due diligence required by Friedman LLP would ultimately mean that no audit would be completed in a timely manner.
This could mean several things.
- Tether Does Not Want An Audit
- Tether has malicious activity going on
- Tether, along with Bitfinex, is trying to cover its tracks
- Tether wants a prompt and concise audit
With all that said, I think that we may see a huge correction in price if the recent meteoric rise in Bitcoin is related to the printing of Tether coins.