Paolo Ardoino, the CTO of Tether, has stated that the USDT stablecoin is, as of this moment, still witnessing issuance, with a total of $100 million in USDT recently being issued.
The statement had come yesterday, on the 1st of August 2021, in order to provide some clarity on certain reports which had indicated that Tether had not, in fact, been issued for a couple of months (two to be exact). Paolo had replied to these reports by claiming that the issuances have been continuing, despite the fact that this may have been occurring via smaller amounts. The CTO also highlighted the blockchain transaction information which had displayed the issuances, with the abovementioned 100 million issuances being shown just a few days ago.
Tether facing problems?
Tether had successfully minted brand new tokens on a consistent basis for a year now, and while some would consider this to be good news, others would see it as a warning sign. There has been an abundance of criticism thrown towards Tether, with some even going as far as calling it a blatant fraud. Additionally, some doubts have been expressed regarding its reserves. MicroStrategy’s CEO, Michael Saylor, had stated that although there are a number of uncertainties that tend to surround Tether, these are nonetheless nothing more than the latest attempt at spreading FUD and that Bitcoin (BTC) will remain unaffected.
Moreover, the criticisms aren’t exactly new. In fact, some have been going on for many years. Tether nevertheless wants to put an end to these accusations and will do so via an audit that will be released soon. Both Tether, as well as Bitfinex, have managed to reach a settlement, and the penalties to be paid totalled $18.5 million.
What will happen to stablecoins?
Regardless of what has been transpiring with Tether, there is some good news. Stuart Hoegner, the General Counsel, had recently spoken about how an audit may be here in just a few months. Through this audit, most of the concerns about USDT will hopefully be put to rest.
In the past, Tether had become involved in somewhat of controversy when William Quigley, the co-founder, had stated that it really does not matter whether Tether is actually backed by the equivalent amount of USD. Ever since that comment had been made, investors have been keeping a watchful eye on Tether, and if the issues persist, then other stablecoin alternatives like BUSD, USDC, and DAI may be prioritized instead.