Renowned economist and Bitcoin 
$94,095 critic Peter Schiff accused Tether, the issuer of USDT, of engaging in manipulation following its recent Bitcoin purchase. Schiff expressed concerns over Tether’s practices, suggesting that the company creates USDT “out of thin air” to acquire Bitcoin.
Critique of Tether’s Bitcoin Acquisition
In response to Tether’s recent acquisition of 7,629 BTC, Schiff claimed that the crypto firm is involved in “more manipulation.” He characterized Tether’s creation of USDT as a form of its own quantitative easing. Schiff warned that this scenario would not yield favorable outcomes for either Tether or Bitcoin.
Tether announced that it had added approximately 7,629 BTC to its reserves, bringing its total Bitcoin holdings to a value of $7.68 billion. Nevertheless, Schiff maintained his assertion that the USDT was created “out of thin air.” He argued that the USDT Tether used for purchases is not backed by anything other than the BTC acquired from those transactions.
Fear and Uncertainty Surrounding Tether
Schiff’s comments have contributed to an increase in fear, uncertainty, and doubt (FUD) surrounding Tether. Negative comments have intensified, especially regarding Tether’s potential exit from the European Union market.
As a result of these developments, USDT’s market capitalization dropped by $2 billion. Tether’s CEO, Pablo Ardoino, responded to the FUD, stating that competitors are trying to convince market participants of non-existent issues. He asserted that Tether and Bitcoin stand together despite external challenges.
For those seeking to understand Tether and Bitcoin better, it may be beneficial to follow Tether’s reserve audits and transparency policies.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
