Tether (USDT) Remains Under Potential Threat
Tether token, symbolized as (USDT), is a cryptocurrency valued at roughly one dollar. Unlike other cryptocurrencies, Tether (USDT) tokens remain relatively stable hence are not volatile. This stability is because it backs up against the U.S Dollar.
Tether runs under the Bitcoin blockchain, through a protocol known as Omni Layer. However, study between Tether and Bitcoin had the most contradicting observations. Despite running under the same Blockchain, as Bitcoin prices change, USDT prices only have minor fluctuations.
Tether made its first appearance in the crypto space in November 2015. Bitfinex, a well-received cryptocurrency exchange, has significant shares in the crypto. According to their official website, you can convert cash to other digital currencies using the Tether platform.
Even though other aspects of security may rely on the integration of blockchain technology, One USD will remain equal to one USDT.
Tether has many core values behind it. It starts with stability, complete USD backup, transparency, and security.
So the founding team made sure that you can use it as an alternative to traditional transaction methods. Therefore, you can deposit, transact, and exchange, without worry of digital currency volatility.
Tether (USDT) Vulnerable To Shutdown
It has already won peoples trust. Leave alone this study. Other studies showed that Bitcoin could go down by 80% once Tether shuts down.
Through an in-depth research investigation, Bitmex showed high probabilities of US regulators shutting down Tether tokens. Evidently, there is doubt over the credibility of the cryptocurrency.
It’s not because Tether relies on the USD, it’s because one USDT is one USD. Before getting into further details of Bitmex research, you should note that digital currencies have the power to affect existing international coins, even the Gold ounce.
Tether is not the first currency to be featured by Bitmex. Previously, Bitmex released other significant studies.
For instance, The Ripple Story, The Lightning Network, A Complete History of Bitcoin Consensus Forks, and an investment flow data of Bitcoin Cash. All these reports are on the Bitmex research blog.
Tether’s forensic examination happens to be the most recent, and shocking revelation by Bitmex. Overall, there are few observations made.
First, the report showed that Tether system has insufficient backup reserves. Even though Tether data shows the token may have sufficient backup, Bitmex states the currency experiences pressure from US regulators.
Tether: An Easy Target For Hackers
From the investors’ side, hacking can be scary. The research further showed that the digital currency does not require the blockchain technology. Bitmex research attributed blockchain to the $31 million USDT hacks.
Since Tether can reverse transactions on the blockchain and can act as an independent currency, the research concluded that its properties could be an easy target for hackers. For instance, why should Tether pay fees to other cryptocurrencies like Bitcoin? Instead, it should create its public database.
Tether (USDT) lacks transparency but does not mean fraud. The research added. As at now, Tether still has a potential future because of its price stability.