Tether is a sister company of Bitfinex. As a matter of fact, they both have the same CEO. This isn't a problem at all, but where the problem lies is where there is speculation that Tether does not indeed the cold hard cash backing up it's coin like they say that they do.
This would pose a very big problem for crypto because Tether is tied to a numerous amount of exchanges, and rather than trading back to the USD, many only allow you to trade it to Tether.
The Commodity Futures Trading Commission subpoenaed the financial records of Tether to see if they indeed have the cash that they should to back up their coin.
If Tether winds up having all of the cash that they are supposed to, that will quickly end the speculation and sell off that we have been seeing over the last couple of days. If they don't, it could mean a serious decline for the price of the entire crypto market.
On top of all of that, South Korea recently implemented their new regulations on crypto trading accounts, and I think many people dumped their coins because of this.
To make matters even worse, Facebook recently announced that they were banning all ads that mentioned cryptocurrency.
If the onslaught of negative news from the mainstream media hasn't been enough, all of these facts have helped push the price of almost every crypto out there down over the last few days.
Let's hope we see a rebound soon, and let's all hope that Tether is 100 percent legitimate as well.
How do you think this will all play out? Tell me in the comments!
To the moon,
