Ethereum Cofounder Shuts Down Tether Critics

📰 News
Thu, 08/30/2018 - 20:00
Put your
crypto to
work
  • 1.30

    Interest per week

  • 67.5

    Interest per year

  • 3.60

    Interest rate

Join Now!
Sponsored by Celsius.Network
  • {{ content.field_content_author|field_value|getauthorname|raw }}

    In an interview with Yahoo! Finance, Joseph Lubin speaks in defense of the biggest stablecoin Tether, but claims that it won’t last

Tether (USDT), a controversial USD-pegged ‘stablecoin,’ has been widely accused of pumping up the Bitcoin price and other major cryptocurrencies, but Ethereum cofounder Joseph Lubin offers a different take. He claims that he doesn’t see a direct link between Tether and market manipulation.

Must Read
Crisis Grips Tether as Company Fires Auditor, Faces Regulatory Scrutiny - READ MORE

Not guilty


During an interview with Yahoo! Finance, Lubin, the CEO of ConsenSys, voiced his opinion on the speculation surrounding Tether, the eight largest cryptocurrency in the world with a market cap of around $2.7 bln. The mastermind behind the Ethereum network believes that Tether is an ‘interesting’ project. Contrary to numerous accusations, Lubin’s analysis shows that the currency is indeed fully backed by the US dollar.

Back in July, there was also an unofficial report which showed that Ether has enough USD to match the amount of issued tokens. As U.Today reported earlier, the company issues a staggering amount of $500 mln tokens only in August.

Tether will be replaced


However, Lubin also revealed that he is not bullish about Tether. One of the most influential people in the crypto industry believes that there will be another stablecoin that will eventually replace Tether.

While there’s pretty solid evidence that Tether was indeed involved in Bitcoin pump-and-dumps, Tether has already lost whatever power it had to manipulate the market. The gargantuan amount of tokens issued in August didn’t produce any visible impact on the Bitcoin price (the same goes for other altcoins).

Speaking of the current state of the crypto market, Lubin predicted that major currencies would see a couple of substantial spikes in price due to the market correction. Each bull run will help to bring fundamental infrastructure to the crypto ecosystem.

Must Read
Bitcoin’s Bull Run Is Far From Over: Investor Brian Kelly - READ MORE

 

{{ content.field_content_author|field_value|getauthorname|raw }}

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

Recommended articles
Bitcoin (BTC) Golden Cross Detected. Time to Buy?

Bitcoin (BTC) Golden Cross Detected. Time to Buy?

Bitcoin (BTC) Price Reaches 'Local Low', $11,000 Possible

Bitcoin (BTC) Price Reaches 'Local Low', $11,000 Possible

Bitcoin (BTC) to Reach $100,000 in 5 Years: Energy Value Forecast by Charles Edwards

Bitcoin (BTC) to Reach $100,000 in 5 Years: Energy Value Forecast by Charles Edwards