Will Tether Do An Audit? Circle’s Audit Report For USDC Raises Pressure on Tether for Audit

January 18th, 2019

Tether is facing the same question again and again as its competitors are ticking all the right boxes what investors want. In less than 24 hours since Circle released its third independent audit report for its USDC, people have already started questioning Tether again to come out clean on its dollar balances that are currently backing Tether (USDT) in circulation.

Tether Losing Market Share, conspiracies finally taking a toll onTether

Tether was one of the first stablecoins that provided shelter to investors against the volatility of crypto markets. But as the coin became popular, the question started being raised on the coin’s credibility and its complete backing by the US dollar. The stablecoin was also connected to it being used for manipulation and rigging the Bitcoin prices, which skyrocketed to USD 20000, in December 2017. It’s been over a year since; the coin has not been able to come up clean on allegations.

Recently, Circle, the company behind USDC released their third report on the USDC stablecoin which was signed by the leading auditor firm Grant Thornton which stated that Circle has sufficient capital to back each individual token on a 1:1 basis.  According to the report that published on the 16th January, 251,211,148 USDC tokens were issued and outstanding on 31 December 2018, while the company holds 251,211,209 dollars in deposits, an excess of 61-dollar reserves.

This report leads to question being fired back at Tether asking to come transparent.

Weiss Rating, a leading cryptocurrency rating, and research agency tweeted the following,

Twitter users have always been asking similar questions to Tether

Since Inception, Tether has abstained from releasing an independent report that shows its US dollar reserves which are the underlying asset for its stablecoin. And now with competition coming in from other stablecoins, who have been fairly transparent on the underlying USD reserves, life is slowly becoming difficult for Tether. Recent research by Diar showed Tether’s dominance over the stablecoin market plummet by 16% – the equivalent of nearly $1.1Bn on the back of transparency and banking woes. The research showed Tether dominance, plummeting from 99% in January 2018 to 69% in January 2019.

While Tether problems are mounting for it to come clean seems to be the only solution. It’s the trust of the investors and people that are driving the whole cryptocurrency industry and slowly the non-transparent coins will have no space in the cryptoshpere.