Cryptocurrency analytics firm Weiss Ratings has advised users to stay away from Tether’s own digital currency, USDT coin. Stating that Tether has serious questions about its dollar reserves, Weiss Ratings team gave the message that this could pose a problem for investor safety.
Having grown by billions of dollars in a few months, USDT exceeded the $ 15 billion market value threshold just a few days ago. Weiss Ratings, on the other hand, has some questions about USDT that is spreading to a wider audience.
USDT Suggests Avoiding Token
Weiss Ratings warned people about the use of USDT with a post shared on social media. Weiss Ratings, which regularly prepares a monthly report on cryptocurrencies; It has drawn the attention of USDT users to three problems:
- The reserves of the Bitfinex exchange, which is affiliated with the same organization as Tether, are not public.
- Although Tether claims to the contrary, there is a suspicion that USDT tokens are not backed by dollars one to one.
- Tether is sometimes thought to operate like the central bank of the crypto money market.
If There Is No USDT, They Can Use USD Coin or DAI
Weiss Ratings’ goal is not to completely exclude people from using fixedcoins. So much so that the Weiss team stated that people can use different fixedcoins instead of USDT. Referring to other tokens that can be considered as a competitor of USDT, Weiss made the following statement in his post last night:
“Unlike USDT, USD Coin (USDC) is audited by at least five different accounting firms. These audit reports have shown that USDC reserves are even larger than they should have been. That’s why our fixedcoin choice is USD Coin. ”
This is not the only alternative proposed by Weiss Ratings. Some notes about Dai were also shared in an article written by Juan Villaverde and Bruce Ng on September 23. Weiss Ratings included the following information in this article:
“There is no company that promises that the DAI supply will always be backed by an equivalent amount of dollars. DAI is pegged to US dollars thanks to smart contracts. These smart contracts have a transparent structure and are open to audit. So anyone can examine how these contracts work. “