Tethered Up: How Stablecoins Plan To Stay Stable

Many heads turned to the idea that a token meant to serve as a backed stablecoin may actually be manipulating the game. In enters Tether. These were heavy considerations especially with all of the beauty going on in the crypto world. Here is quick dive into what happened during the trials earlier this year, and how things have played out for the parties involved since. A New York State Of Affairs A complaint filed earlier this year claimed that Tether (USDT) had knowledge around the volatility of crypto’s total market capitalization, including a skyrocketing $795 billion in late 2017. Five crypto traders were the plaintiffs who claim they purchased cryptocurrencies at inflated prices and suffered financial losses as a result. As a result, the suit represented anyone in the United States who inflated prices may have harmed during this period of time. The defendants’ lawyers argued that the case would fall apart, with the accusation that Tether printed its USDT stable coins without any solid backing. Related Reading \ Dog-Themed DeFi Project Mysteriously Loses Fundraised $60 Million Another lawsuit In 2019 resulted in a settlement for both parties. The New York State Attorney General Letitia James announced that the office was investigating Bitfinex. What made things sticky is that Tether also came into the spotlight due of the exchange’s affiliation with Bitfinex. The case surrounded an alleged $850 million in cover-ups f...