The whole cryptocurrency space has been talking about Tether [USDT] over the past few days with the majority believing that it is in its final days in the market. The speculation that has been doing its rounds in the market is related to Tether’s claim of being backed by the US Dollars.
Some market speculators believe that the cryptocurrency’s bank account was not audited and that the number of coins in circulation do not match the number of USD in their escrow accounts.
Additionally, Tether’s performance in the market has been relatively poor in comparison to other cryptocurrencies in the market, taking into consideration that the coin is amongst the top 10 coins in the market.
The controversy was recently discussed by the co-founder of TrueUSD, Danny An, in an interview with CNBC Crypto Trader. TrueUSD [TUSD], similar to Tether, is a stable coin pegged with the US Dollars. The cryptocurrency can be redeemed for US Dollars with a 1:1 ratio. The stable coin which is currently ranking in the 47th position on CoinMarketCap has a market cap of over $163 million.
On the topic of whether the controversy behind Tether was true, the Founder said:
“Its difficult to tell because there is a lot of news coming out about it but that’s informed by some information by the banks or the actual, let’s say, regulators if they issue a subpoena. So it’s something where there’s been a lot of suspicion about but there’s never been any concrete real evidence for it.”
Danny An further spoke about how TUSD works and the valuation of the coin. According to him, TrueUSD is the second stable coin to step into the cryptoverse, after Tether. Danny stated that the team followed Tether’s footsteps and also noted that “transparency regulatory compliance” has to be their top priority at all time.
“So what it does is, you have a bank account, that’s an escrow account. You put in a hundred dollars in it and then you mint a hundred dollars in TrueUSD and the matching escrow accounts should always match the circulating TrueUSD.”
This was closely followed by the co-founder speaking about solving the problem of maintaining complete transparency of their bank account as Tether’s escrow account, which remains mysterious, is the key to all the problems. Danny An revealed that they avail services from a public account firm called, Conan Company. The company verifies whether the tokens in circulation are on par with the US Dollars in the escrow account on a regular basis.
Moreover, Changpeng Zhao, CEO of one of the biggest cryptocurrency exchange platform, Binance, spoke about listing the stable coin on the exchange platform. He said:
“Waiting for more people to take advantage of this arbitrage opportunity, ie, buy more PAX or TUSD using fiat. It will bring the price back inline, and increase the total supply. We can’t open a market for a stable coin that only has $24m market cap.”
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