Popular stablecoin Tether has updated its  Terms of Service (TOS) on February 26th, once again raising questions over its dollar peg. 


No One Does it Better Than Tether

Tether 00 has regularly come under suspicion over its claims that it’s 1-to-1 backed by the US Dollar and that it has been used to manipulate Bitcoin prices. In June 2018, Bitcoinist reported on a paper by two researchers at the University of Texas, who claimed to have identified potential evidence of direct price manipulation since November 2017.

tether

In December, however, the rumors about its dollar peg began looking increasingly thin. Bank statements revealed that $2.2 billion was present in Tether’s account at Puerto Rico’s Noble Bank on January 31st in 2018. Data from CoinMarketCap shows that the same amount of Tethers existed back then.

Just a few short months later, the company has once again managed to turn the cryptocurrency community against itself, with a controversial change in its TOS.

Social media users noticed that they had removed the…

Click to continue reading on its source location…

Source: https://thebitcoinnews.com/tethers-new-terms-of-service-spark-fractional-reserve-concerns/