Tether, the company behind the largest stablecoin USDT, is disputing the findings and conclusions made by a recently written paper.
According to Tether, this “non-peer reviewed paper” posted Tether issuances are responsible for manipulating the cryptocurrency market.
Tether Expects New Lawsuit
In a recent announcement made by Tether, they “vigorously” dispute the findings and conclusions claimed by the aforementioned paper. According to the company behind the stablecoin, they fully expect lawyers to use the paper and start a lawsuit.
They wrote that they would not be surprised if a lawsuit ill be filed imminently. This is why Tether wants to make clear their position on the matter.
About it, Tether wrote:
“In advance of any filing, we want to make clear our position that any claims based on these insinuations are meritless, reckless and a shameless attempt at a money grab. Accordingly, Tether will vigorously defend itself in any such action.”
The firm behind the stablecoin considers that these are baseless accusations that attempt to undermine the growth and success of the entire crypto community.
Tether offers the possibility for users to have a hedge against volatility in the market using a digital asset tethered to the value of the US dollar. Through this stablecoin, Tether introduced a fiat gateway to the Bitcoin (BTC) and Ethereum (ETH) blockchains.
In addition to it, Tether provides instant global transactions and price stability.
In this blog post, Tether informed that the company or its affiliates have never used Tether tokens or issuances to manipulate the cryptocurrency market or token pricing. Indeed, they continue to claim that all the Tether tokens are fully backed by reserves and are issued according to market demand.
“It is irresponsible to suggest that Tether enables illicit activity due to its efficiency, liquidity and wide-scale applicability within the cryptocurrency ecosystem,” the announcement reads.
Tether has been accused of manipulating Bitcoin price in a report released by Bloomberg last year. The finance professor John Griffin and Amin Shams claim that Tether manipulated Bitcoin prices during bear markets.
At that time, Tether unveiled a new banking partner called Deltec Bank & Trust Limited. As per the report presented by the company, Tether held close to $1.83 billion dollars as of October 31st with 1.82 billion USDT in circulation.
Things are different now with 4.11 billion USDT in circulation. Tether has also released a report in which they show the funds they have.