Tethers have long been a handy shelter in the cryptocurrency market - a place to park your funds when the market takes a tumble.
But what happens if if turns out that Tether isn't actually the safe haven it appears to be?
In a tweet this afternoon, it was announced that Tether dissolved their relationship with auditor Friedman LLP.
Just to be clear here, there is no way to know at the moment that this implies any shady dealings on anyone's behalf. Having said that, Friedman LLP has been in business since 1924 - it's no fly-by-night company. Tether, on the other hand, has been surrounded with questions about its own solvency - that is - does Tether actually have a reserve of the money that is issued via its own tokens, or is it just fabricating money out of thin air?
If Tether is simply moving on to a different auditor, maybe it's just a case of "nothing to see here". If not, this could be bad. If it turns out that Tether does not actually hold their value in reserve, the value of the entire cryptocurrency market comes into question. If fabricated Tether "dollars" have been used to fund a market boom, then the real value of the market could be less than it appears to be.
Let's hope it's just a case of Tether moving on to a different auditor. Keep your eyes on news around Tether over the next few hours and days. For now, I recommend moving Tether funds into your preferred currency.
*This is not professional trading advice - just my opinion!
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source:
https://www.coindesk.com
image source:
https://themerkle.com/will-the-federal-reserve-go-after-tether-eventually/
