One of the world's most influential economists, Nouriel Roubini, called out Tether stating that the whole company is a scam.
Nouriel Roubini, also known as Dr. Doom, stated in a Twitter debate that the controversial company was created to artificially inflate bitcoin's price, and that it has printed over 2 billion USD in value only since last December while regulators are fast asleep.
Indeed Tether/USDT used to manipulate Bitcoin prices. Without this scam Bitcoin price would collapse by 80%. Regulators asleep at the wheel while $2 billion of fake $ created via this scam, half of it since December. Not even North Korea created so many fake $ backed by nothing https://t.co/HfIWsU4we8
— Nouriel Roubini (@Nouriel) January 25, 2018
His estimate about BTC losing 80% of its price should this Tether printer collapse is a true doomsday statement, but we should keep in mind that even if that happens, major cryptocurrencies will be at a price higher than what they started last year at.
Dr. Doom got his nickname and fame by having predicted the 2007 real estate bubble bursting, after which he started increasingly appearing in mainstream media. This makes him hard to ignore – both for regulators and for Tether itself. His last attack on crypto happened when he proclaimed BTC itself a fraud. This turned out to be incorrect (so far). We'll see how this saga will end considering Tether still refuses to make an audit.
Tether recently broke off their relationship with the auditing company Friedman which further brings into question the real USD backing of every USDT token. Friedman were in charge of auditing Tether's accounts, but judging by last week's announcement, this relationship between Friedman and Bitfinex – the exchange suspect of sharing an ownership structure with Tether – has abruptly ended.
Let's not forget that Tether claims that every USDT is backed by real USD deposits so in theory, Tether's accounts should contain over 2.25 billion USD. However, given that Tether hasn't had banking for a while and is completely audit-free, such ideas are quite far fetched.
The anonymous blogger Bitfinex'd, known for his frequent accusations and warnings against Bitfinex and Tether, once again warned people about USDT and suggested everyone move their money out of exchanges supporting USDT. According to him, they're all a ticking time bomb due to Tether's money-printing operations.
After admitting to a cessation of business relationships with Friedman, Tether actually hired Madoff and Associates to oversee auditing services. Bernie Madoff, who started the company, is currently serving a 150 year prison sentence for running the world's biggest Ponzi scheme. His associates running Tether's audits is just icing on the cake.
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