{"id":563989,"date":"2020-09-25T13:47:18","date_gmt":"2020-09-25T10:47:18","guid":{"rendered":"https:\/\/en.ethereumworldnews.com\/?p=563989"},"modified":"2020-09-25T13:47:18","modified_gmt":"2020-09-25T10:47:18","slug":"weiss-ratings-avoid-exposure-to-tether-usdt","status":"publish","type":"post","link":"https:\/\/en.ethereumworldnews.com\/weiss-ratings-avoid-exposure-to-tether-usdt\/","title":{"rendered":"Weiss Ratings: Avoid Exposure to Tether (USDT)"},"content":{"rendered":"<p><strong>In brief:<\/strong><\/p>\n<ul>\n<li><strong>The team at Weiss Ratings has cautioned investors against using Tether (USDT)<\/strong><\/li>\n<li><strong>They cite that USDT is not 100% backed by fiat and Tether is running like a fractional reserve bank<\/strong><\/li>\n<li><strong>They recommend USDC which is subject to constant audits and 100% backed<\/strong><\/li>\n<li><strong>DAI is also an alternative given its transparency via smart contracts<\/strong><\/li>\n<\/ul>\n<p>The team at Weiss Ratings has provided a hard-hitting recommendation to crypto-traders by suggesting that they should avoid exposure to the stablecoin of <a href=\"https:\/\/en.ethereumworldnews.com\/tethers-usdt-daily-trade-vol-eclipses-btcs-marketcap-hits-13b\/\" target=\"_blank\" rel=\"noopener noreferrer\">Tether (USDT).<\/a> The team at Wiess shared this insight via Twitter and explained that USDT is not 100% backed by fiat as the parent company claims. Furthermore, Tether is run like a fractional reserve bank and its balances are held in private back accounts that are not publicly auditable.<\/p>\n<p>Below is the tweet providing the recommendation by the team at Weiss Ratings against Tether (USDT).<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/hashtag\/Bitfinex?src=hash&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">#Bitfinex<\/a>&#39;s vaults are not publicly auditable and there have been many allegations that <a href=\"https:\/\/twitter.com\/hashtag\/USDT?src=hash&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">#USDT<\/a> is not 100% backed, and that it is run like a fractional reserve bank. Because of this, we recommend you avoid exposure to <a href=\"https:\/\/twitter.com\/hashtag\/Tether?src=hash&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">#Tether<\/a>.<\/p>\n<p>&mdash; Weiss Crypto (@WeissCrypto) <a href=\"https:\/\/twitter.com\/WeissCrypto\/status\/1309236276340699137?ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">September 24, 2020<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2>USD Coin (USDC) and Dai (DAI) are Safer Options<\/h2>\n<p>Weiss Ratings went on to provide an alternative to Tether (USDT) in the form of USD Coin (USDC). <a href=\"https:\/\/twitter.com\/WeissCrypto\/status\/1309199684926349316\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">According to<\/a> the team at Weiss, USDC is subject to regular audits from at least five accounting firms and their tokens are 100% backed by fiat owned by the parent company.<\/p>\n<blockquote><p><span class=\"css-901oao css-16my406 r-1qd0xha r-ad9z0x r-bcqeeo r-qvutc0\">Unlike USDT, <\/span><span class=\"r-18u37iz\">#USDC<\/span><span class=\"css-901oao css-16my406 r-1qd0xha r-ad9z0x r-bcqeeo r-qvutc0\"> is subject to audits from at least five accounting firms. Based on these reports, USDC is more than 100% backed \u2014 which is why it is presently our preferred <\/span><span class=\"r-18u37iz\">#stablecoin<\/span><span class=\"css-901oao css-16my406 r-1qd0xha r-ad9z0x r-bcqeeo r-qvutc0\">.<\/span><\/p><\/blockquote>\n<p>The team <a href=\"https:\/\/weisscrypto.com\/en\/article\/stablecoins-are-red-hot-but-what-are-they-exactly-and-how-can-you-cash-in\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">also recommended<\/a>\u00a0the usage of Dai (DAI) by explaining that it is governed by smart contracts that are easily tracked.<\/p>\n<blockquote><p>DAI is pegged to the U.S. dollar not by the promises of its issuer, but by smart contracts that use market forces to enforce and maintain the peg.<\/p>\n<p>These smart contracts are transparent and auditable, so anyone who wants to dig into the matter can see how they&#8217;re supposed to operate<\/p><\/blockquote>\n<h2>Tether (USDT) is Still The Number 1 Stablecoin<\/h2>\n<p>Wiess Ratings&#8217; recommendations are similar to those made by veteran traders Peter Brandt, in mid-August, where he warned that Tether was an accident waiting to happen as seen in the original tweet below.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Tether is an accident waiting to happen. Tether is just another fiat currency.<\/p>\n<p>&mdash; Peter Brandt (@PeterLBrandt) <a href=\"https:\/\/twitter.com\/PeterLBrandt\/status\/1292978734803357704?ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">August 11, 2020<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>However, <a href=\"https:\/\/en.ethereumworldnews.com\/tether-rescues-1m-usdt-lost-in-defi-smart-contract\/\" target=\"_blank\" rel=\"noopener noreferrer\">the parent company<\/a> of Tether has brushed off all the warnings against USDT. Additionally, Tether is very much an essential cog in <a href=\"https:\/\/en.ethereumworldnews.com\/ethereum-investors-continue-moving-eth-out-of-exchanges-and-into-defi\/\" target=\"_blank\" rel=\"noopener noreferrer\">the DeFi machine<\/a> and its demand has resulted in the increment of USDT&#8217;s market cap to over $15 Billion.<\/p>\n<p>At the time of writing, Tether&#8217;s total asset value stands at $15.388 Billion. This figure was around <a href=\"https:\/\/en.ethereumworldnews.com\/tether-usdt-the-safe-haven-asset-no-one-is-talking-about\/\" target=\"_blank\" rel=\"noopener noreferrer\">$4 Billion<\/a> at the beginning of 2020 which means that its market cap is on a path to increase by a factor of four by the end of the year.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In brief: The team at Weiss Ratings has cautioned investors against using Tether (USDT) They cite that USDT is not 100% backed by fiat and Tether is running like a fractional reserve bank They recommend USDC which is subject to constant audits and 100% backed DAI is also an alternative given its transparency via smart contracts The team at Weiss Ratings has provided a hard-hitting recommendation to crypto-traders by suggesting that they should avoid exposure to the stablecoin of Tether [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":55115,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[108120,823],"tags":[7092,1322,1811,108167],"_links":{"self":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/563989"}],"collection":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/comments?post=563989"}],"version-history":[{"count":0,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/563989\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media\/55115"}],"wp:attachment":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media?parent=563989"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/categories?post=563989"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/tags?post=563989"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}