According to a report in the blog of the website “Modern Consensus”, the Noble Bank from Puerto Rico is currently in big trouble. It also states that the bank is not financially stable and is working hard to obtain new funds.
This is of interest because Noble Bank is the main central bank of the cryptocurrency tether (USDT). Noble Bank CEO John Betts has worked with Tether co-founder Brock Pierce before the companies were founded. The cryptocurrency tether should be covered by US dollars. However, there have been recent allegations that Tether is said to have bought cryptocurrencies with tokens that did not have dollar coverage.
Much of the assets invested in Noble Bank are the US dollars Tether is supposed to cover. The bank has been trying to find big investors to help her buy tethers. This remained in vain. In the blog report it was said, citing an unnamed source:
“If Noble can not raise money soon, they'll only have a few days left … they're desperate.”
A Tether spokesperson recently said that Tether has had some problems lately. In addition, a case was reported in which an individual wanted to “sell” tens of millions of dollars without finding a buyer.
Recently, two new stablecoins, Tether, are trying to challenge his position. These are the cryptocurrencies “Gemini Dollar” (GUSD) and “Paxos” (PAX). Both coins are covered on a 1-to-1 basis by US dollars. This means that both a Gemini Dollar and a Paxos represent the value of one dollar. In addition, they have undergone an audit by the New York State Department of Finance. Tether, however, was repeatedly exposed to doubts regarding the cover. In addition, the company split in January from its lead auditor, New York law firm Friedman LLP. After that, even the opinion was voiced that it was impossible to audition Tether.
Paxos developers have provided their stablecoin with a back door that may not appeal to all users. For example, law enforcement or any administrator can “freeze” or even destroy a wallet's coins. Paxos has also claimed to publish monthly balance sheets, which would then be reviewed by leading experts.
The cryptocurrency Gemini Dollar was introduced by the crypto market gemini of the Winklevoss twins. Gemini Dollar is based on the Ethereum Blockchain and uses the ERC-20 token standard. Gemini Dollar's goal is also to outrank Tether as a top dog among the Stablecoins.
Sources: Modern Consensus, Business Insider, Medium, Pixabay
Author: Peter Joost – Source Post: https://www.kryptovergleich.org/droht-der-tether-bank-die-insolvenz/
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