One of the most respected members of the crypto community, Ethereum co-founder Joseph Lubin (Lubin Joseph), spoke in defense of the Tether.
Critics argue that stablon was used to manipulate the price of bitcoin. However, Lubin disagrees with them. His opinion he told Yahoo Finance.
According to the developer, he believes that USDT is really backed by real dollars in the ratio 1: 1 and according to the Issuer token startup Tether.
“Tether is an interesting project. Based on our analysis, which is based on communication with a number of experts in the industry, we truly believe that a Tether is provided 1:1 American dollars in Bank accounts… with regard to market manipulation, I don’t think they were associated with Tether directly – if they really took place,” said Lubin.
In June, researchers from the Department of Finance the University of Texas published the results of a study according to which the Issuer of the token USDT manipulated bitcoin market. The authors of the report found that associated with crypto currency exchange Bitfinex persons used USDT to buy bitcoin in periods with negative returns after new issues. However, even less than 1% of the transfer USDT in BTC has led to a significant increase of the latter.
Tether has not yet published the results of an independent audit, associated with these charges. At the same time to investigate the company hired a law firm founded by the former Director of the FBI. As of June 1, Tether confirmed the presence in their accounts of $2.55 billion, sufficient to cover its tokens.
Lubin believes that if the cryptocurrency market is manipulation, then they are connected with insufficient regulation of trading platforms in this segment compared to the traditional stock exchanges.
“When we improve regulation, price fluctuations will become less pronounced,” said Lubin.
He also suggested that in the future more decentralized tokens will completely replace the Tether and take the place of a leading stable cryptocurrency.