Tether to Lost $1B of Market Cap in a Month

As reported, since the beginning of October, Tether has burned about 990 million tokens
01 November 2018   244

Against the background of active competition of stablecoins, a massive outflow of funds from Tether continues - since the beginning of October, the capitalization of the USDT token has decreased by more than $ 1 billion, CCN reportes.

On October 30, Tether Limited destroyed 100 million USDT, reducing the total volume of tokens to 1.8 billion. Another 50 million USDT were destroyed the next day.

In total, since the beginning of October, Tether has burned about 990 million tokens. It is noteworthy that at the begining of November 2017, about 450 million USDT were in circulation totally. With the current price of just under $ 1, token capitalization has decreased over the past month by more than $ 1 billion and more than 37% in history.

On October 31, Tether, which was at eighth place in the CoinMarketCap for a long time, moved down one line. At the time of publication, Monero is separated by a little more than $ 50 million.

Note that on  November 1 Tether sent 100 million USDT tokens to the Bitfinex exchange account.

While Tether is experiencing obvious difficulties, its competitors in the face of TrueUSD, USD Coin and Paxos Standard are showing rapid growth. The total capitalization of these steablcoins to date has exceeded $ 400 million. And although this doesn’t compare with Tether's loss of $ 1 billion, this fact suggests that the USDT is losing confidence due to the opacity of operations, problems with banks and dubious links with Bitfinex.

Tether to Have Account at Bahamas

Tether reported on cooperation with Deltec Bank at Bahamas
02 November 2018   221

The issuer of the USDT, Tether Limited officially confirmed its cooperation with Deltec Bank, a small financial institution from the Bahamas. The company also submitted a letter, on the basis of which it has sufficient funds to ensure the total volume of issued USDT tokens.

Tether Limited is pleased to confirm that it has established a banking relationship with Deltec Bank & Trust Limited (“Deltec”), a 72-year-old financial institution with headquarters in the Commonwealth of The Bahamas.

Tether Team

It is also noted that Tether Limited was accepted as a Deltec client after full company check. Allegedly, it includes an analysis of processes, policies and legal compliance, a complete check of information about shareholders, final beneficiaries and managers of Tether Limited, as well as an assessment of the company's ability to maintain a binding to the US dollar at any time and its reserve management.

This process of due diligence, was conducted over a period of several months and garnered positive results, which led to the opening of our bank account with this institution. Deltec reviews our company on an ongoing basis.

Tether Team

Tether also states that the company is registered with the Financial Crimes Enforcement Network (FinCEN) and the US Department of the Treasury and adheres to the highest standards in anti-money laundering and terrorist financing procedures.

The message is accompanied by a reference to a letter from Deltec Bank, which states that at the end of the business day on October 31, 2018, the Tether account had a cash value of $ 1,831,322,828.

Thus, based on this letter and taking into account the current capitalization of USDT ($ 1.772 billion), Tether really has sufficient funds to ensure the total volume of issued tokens. The question of whether they were provided at all stages of the company, remains, however, open.

It also draws attention to the fact that in the letter, contrary to the accepted practice, there is no signature of any official of the bank.