Tether: What’s going on with this StableCoin?
Tether (USDT), a U.S. dollar stablecoin, declared that it will not block Tornado Cash’s smart contract addresses that were on the Specially Designated Nationals and Blocked Persons (SDN) list maintained by the U.S. Office of Foreign Assets Control. Tether claims that until told to do so by law enforcement, it would not freeze authorized Tornado Cash addresses.
In response to concerns highlighted by the Wall Street Journal earlier this week, Tether says it plans to conduct an audit. It claims there hasn’t been an audit, but one is planned. The Wall Street Journal reported on August 27 that the company had promised an audit in 2017, but had not followed through. Tether responded with that remark.
Given the aforementioned, the pro-decentralization community is applauding “one of the least trusted stablecoin behemoths.” Tether is a popular altcoin in the cryptocurrency world for not, as many believe, proactively bowing down to American law enforcement. Rumors about Tether’s ability to back its stablecoin with sufficient assets have always been a problem for the corporation. The corporation may have improved its reputation by refusing to freeze addresses. At least among crypto enthusiasts who view decentralization as a fundamental principle of open finance.
The first attestation, evaluating Tether’s assets as of June 30, 2022. BDO Italia would be the company to analyze Tether’s reserves and other matters. Data from the report showed that commercial paper exposure had dropped from $20 billion to $8.5 billion, or 58%, since the previous quarter. Independent Tether testimony shows a 58% drop in holdings of commercial paper.
Tether and ETH
You must already be aware of the impending merger of Ethereum, which will result in Ethereum 2.0, an Ethereum with a Proof of Stake consensus unless you have been living under a rock. However, a split in the Ethereum chain will take place at that point, allowing the old Proof of Work Ethereum chain and the new protocol to coexist. Due to this fork, the various Ethereum chain apps must choose between ETH PoS and ETH PoW.
The stablecoin juggernaut USDT has now formally confirmed its support for Ethereum’s forthcoming Merge upgrade and conversion to a proof-of-stake (PoS) consensus mechanism-based blockchain. After an official announcement by USD Coin (USDC) issuer Circle Pay. The announcement was made on the same day as a stablecoin rival. The rival promised to only support the much-anticipated upgrade to Ethereum. Tether will also support Ethereum 2.0. This is a piece of very good news for ETH enthusiasts.
Tether refuted further assertions and conclusions made by the Wall Street Journal. The business writes that it is profitable: “It is incorrect to infer that our company is not profitable. Tether responded to the assertions that it had $191 million more in assets than liabilities. A 0.3% fall in assets would make it technically bankrupt. The WSJ seeks to single out Tether and undermine its reputation. According to Tether, which argued that a margin of variation in reserves is typical throughout the stablecoin market. Tether declared that it has recently effortlessly redeemed $16 billion of its USDT stablecoin, proving its tenacity.
