A study of the latest Bloomberg show that the market has been speculation that Tether does not have the stability of billions of dollars, but these fears are unfounded.
The study pointed out that in January 21, 2018, Tether in Puerto Rico (American autonomous prefecture) $2 billion 200 million Noble bank account. The same day, according to CoinMarketCap data show that the amount of USDT in the market circulation of $2 billion 195 million. A Bloomberg survey further pointed out that 9 2017 and 10 month data are consistent with the actual data.
Tether has claimed its currency behind the steady release of USDT billions of dollars to support the market, skeptical of Tether real dollar reserves, the main selling point is $1:1 and digital currency pegs, many people think that Tether is not actually a lot of cash to support USDT.
But Bloomberg analysis of the Tether bank statement, that these doubts and fears do not exist.
The four single month bank shows details of cash held in bank accounts on the bill Tether. According to informed sources, some of which have been approved by regulatory agencies of bank account audit. Where is the most suspicious when Tether issued a USDT, whether at the ratio of 1:1 to the bank deposit 1 dollars. While these documents do not provide a complete record of Tether financial statements, but they do provide more detail than the previous public information.
For example, according to Coinmarketcap data show that in January 31, 2017, Tether had $2 billion 200 million in deposits at Noble bank account, the amount of USDT Tether on the day of the issuance of the cumulative 2 billion 195 million. The number of total deposits of $9 2017 and 10 Tether and the month issued by USDT are also matched. Tether and Bitfinex (encrypted currency exchange), by the same number of all executives and business. According to informed sources, the bank statement also shows that after becoming the only platform between USDT users trading liquidity in Bitfinex last year.
There are a lot of Tether assets transparent concerns, if you search on Google “Tether is a hoax?” Will bring thousands of results. These news reports are analyzed and reported on Tether asset transparency. In January this year, CFTC (U.S. Commodity Futures Trading Commission) issued a summons to Tether and Bitfinex to check their bank in the presence of the appropriate cash reserves on the market, whether Tether is a hoax discussion also increased.
But the current situation of Tether bank account investigation CFTC cannot be determined, CFTC Elliot spokesman Erica Richardson declined to comment.
To be sure, Bloomberg comments these banks did not show on the bill, Tether funds or capital position now. The bank is the access to the company’s financial statements provide records of bills, but a government official has confirmed the authenticity of the bank bills. Wells Fargo Bank in 2017 in the United States (Wells Fargo & Co. Tether) after cut bank agency business, Tether and Bitfinex have lost many of the bank’s business in its development in the past three years, including a number of banks in Taiwan.
Tether and Bitfinex’s general counsel Stuart Hoegner declined to comment on Tether’s cash balance at the bank. About the CFTC investigation, he wrote in an e-mail: “as a great importance to the legal and compliance obligations of the company, we are unable to Tether and Bitfinex of the public comment, also cannot recognize the existence of a summons or similar legal requirements.”
If the Tether does not have enough cash to support, will bring huge influence to the encryption of money market. The Tether value of 19 billion dollars, is the world’s No. 6 most valuable encryption currency. According to estimates the blockchain data analysis firms Blockspur, in exchange bitcoin transactions at least 30% by USDT to the.
Tether is a quasi bank, because many encryption currency exchange can not guarantee or reserve bank account. And must through the agent bank transfer $different, Tether can be in the absence of traditional financial institutions or government involvement in the case of transfer to anywhere in the world.
In addition to Tether’s cash reserves of Tether market concerns, there is another worry is that it is possible to manipulate the price of bitcoin. According to Bloomberg News reported last month, the U.S. Justice Department is investigating last year bitcoin rapid rise to $20 thousand by Tether USDT trading stimulus. Therefore, even if regulators of Tether are satisfied, Tether can prove that it has the corresponding dollar store, but this does not mean that the investigation of the Tether has been removed, because there are about Tether manipulate bitcoin price investigation.
According to the bank statement, Tether opened a Noble account in September 2017, expanding from zero deposit in September 1st to $392 million in September 30th. According to Freedman CPA (Friedman LLP) a review of unedited report, this month in the Bank of Montreal (Bank of Montreal) to the general counsel herzner (Hoegner) on behalf of the $60 million 900 thousand cash. A total of $459 million 200 thousand. In September 30, 2017, 435 million USDT. Bloomberg tried to contact Friedman LLP to verify the authenticity of the data, but did not get a response.
The latest Tether statement shows that from the beginning of July 2018, according to the month of July 1st amounted to $1 billion 900 million at the beginning of the end of July 30th, $210 million. Because the Tether company will transfer funds to the Bahamas Deltec Ltd. BankTrust, balancesfell. Familiar with Deltec and Noble tried to contact the lawyer to verify the data, but has not yet responded.
At the beginning of 2017, the Bank of Taiwan lost business led to Tether significant changes, Tether executives decided not to allow the public to buy or sell directly from Tether USDT, from now on, only the Bitfinex can issue from the people there to buy the USDT Bitfinex exchange to investors only through the sale of USDT.
At the end of 2017, bitcoin prices surged to $20000, investors demand for USDT has greatly increased. At the beginning of 2017, Tether market capitalization of about $10 million; by the end of 2017, rose to $1 billion 300 million market capitalization. This means that a huge amount of money to capital flow between the Tether and Bitfinex support, which is the Noble bank has played a key role in the proof of place, the flow of funds exist.
In July 6, 2017, Bitfinex to Tether out of 100 million USDT. Noble bank statement shows that the same day, Tether paying Bitfinex $100 million. In July 20th, Bitfinex for 50 million USDT for $50 million. In July 24th, 100 million USDT exchanged for $100 million.
Another complained that the money market is the promise of Tether encryption for the official audit of the accounts, but never follow up. On the contrary, it issued two financial data reporting, but two reports do not prove that they are the true audit reports. One report or by former FBI Director Luis Free (Louis Freeh) co founded the company completed. These two reports are not involved in Noble bank bank for details of the bill.
The Noble bank’s internal processes may prove that Tether holds its claim to the dollar reserves. This is because each issue or redemption USDT, Omni layer transaction will open records in bitcoin blockchain. According to informed sources, Noble bank requires these records as the transfer of funds between the Tether and the Bitfinex account certificate. Tether said these records can be used as an audit trail, once regulators on the summons will be submitted to CFTC. Tether said that regulators spent about six months to check and verify the authenticity of these transactions.
Tether said in November 1st this year, it holds $1 billion 800 million of funds deposited in bank Deltec. Noble bank statement shows that during the period from July 12th to July 20th, a $1 billion 370 million cash outflow from Noble bank.
The bank statement also shows Tether how much money from the cash reserve. According to the data show that in July this year, since the beginning of this year, Tether has won $6 million 600 thousand in interest.