Confusion Continues To Grow With Suspicious Transactions in Tether’s Mint Wallet
Tether’s controversial involvement with Bitcoin exchange Bitfinex has raised many questions in the recent past and everyone is still not getting enough clue as to what the startup is doing with its tokens. Moreover, the continued silence of Tether and Bitfinex has kept the suspicion growing as the concern among investors grows further.
Tether is an issues of dollar-pegged USDT tokens to exchanges with each Tether token amounting to one U.S Dollar at any point in time. The startup has recently been under the close scrutiny of many analysts and have been alleged to show more number of tokens than those being actually backed by the USD. Many say that Tether have been sending tokens to Bitfinex which is accused of manipulating the price of Bitcoin.
In yet another doubt raising activity, Tether’s mint wallet recently saw a very strange transaction happening showing a return of 30 million tokens, meaning 30 million USD. However, what was more strange is that the “Revoke tokens” or the return tokens were burnt soon.
As it has been always, there has been no official statement from the startup as to why the revoke tokens were destroyed. Many saw that it is quite possible that the burning of tokens was done in response to the allegations of injecting fake liquidity to boost up the Bitcoin price.
One thing that is quite surprising is that in spite of all the allegations being made in the recent past, the USDT tokens has managed to keep it price attached to the dollar in a very good manner. But yes, the allegations still point to the possibility of insider trading and artificial buying with some spoof trading.
The skepticism on Tether’s fishy behavior has grown more stronger recently after it became clear that the U.S Commodity Futures Trading Commission has issued subpoenas to the two companies back in December 2017. In an email statement to Bloomberg, Erica Richardson, a CFTC spokeswoman said: "We routinely receive legal process from law enforcement agents and regulators conducting investigations. It is our policy not to comment on any such requests.”
Tether tokens offer a very convenient way to transfer digital assets between exchanges without being dependent on bank transfers or fiat currencies. Due to its higher circulation, the risk of things going wrongs, especially after its increased suspicious behavior is even higher. We hope all is just well, and the suspicions rather don’t prove to be true.