Tether issues a new round of USDT and EURT tokens built on top of the ethereum blockchain. The tokens are ERC20-compatible and are intended to boost liquidity on the Ethfinix platform.
Over 60 million dollar-pegged USDT and 86 million euro-pegged EURT have been minted. The tokens are ERC20-compatible and are supposed to increase liquidity on the Ethfinix platform.
Tether has yet to clarify how Ethfinix will introduce the new tokens and how they intend to form trading pairs. Additionally, the number of new ethereum-based tokens Tether plans to mint in the future remains unknown for the time being.
Tether minted the first ethereum-based USDT and EURT tokens in January, to enable “interoperability with ethereum based protocols and Decentralised Applications (DApps) whilst allowing users to transact and exchange fiat pegged currencies across the Ethereum Network”.
Tether digitizes fiat currencies to create Tethers – digital tokens that are pegged to the value of the fiat currency they represent.
The company has been caught up in a storm of controversy lately, over lack of transparency; lack of a third-party audit on the tether reserves; ToS clauses that state the company has no obligation to redeem tethers at face value; other discrepancies in provided information, and alleged common ownership with the Bitfinex exchange.
Last year, an alleged hack pushed controversy surrounding Tether even further, sparking speculation over the veracity of the claims and the nature of the not-so-decentralized Omni network.
Earlier this year, news that the US Commodities and Futures Trading Commission (CFTC) issued subpoenas to Bitfinex and to Tether resurfaced in the media, adding to the controversy.
Weiss analyst Juan M. Villaverde claims that the biggest issue with Tether is that it has never been audited.
“They have continuously claimed their tokens are backed 100% by actual dollars, yet they have failed to present any evidence to support this claim,” Villaverde said.
According to Villaverde, should Tether turn out to be fraudulent, “it could cause exchange failures and it could drive investors to liquidate their positions, causing sharp declines in market prices”.
