The Bitcoin bull market this season is currently undergoing through ‘FUD-Phase’ where a series of FUDs have hit the market one after the other, many of which has already been debunked. After Bitcoin mining energy consumption FUD and China Bitcoin ban, it seems the long-running Tether FUD can make an entry.
Jim Cramer, the founder of popular business media publication The Street asked Pomp whether Tether is good for the market trying to indicate the possible accusations of market manipulation. Stuart Hoegner, the General Counsel for Tether and Bitfinex responded to Cramer’s query with the breakdown of their issuance reserves.
Next attest for Jun 30
Breakdown of our reserves as of Mar 31 here: https://t.co/H19bbODPOa
Happy to discuss. Don't listen to nocoiners seeking to opportunistically tear down the crypto ecosystem
— Stuart Hoegner (@bitcoinlawyer) May 25, 2021
Tether FUD suggests that Bitcoin price is often manipulated and pumped by the issuance of a significant amount of USDT in the market whenever the price of the top cryptocurrency takes a dip. The FUD also claims that USDT supplies are not backed by the US Dollar and the company issuing it prints just like the Federal Reserve. While there is no iota of evidence to prove such wild claims and Tether has also offered audited reports of its holdings, the market seems just right for another FUD.
No Bull Market is Complete Without FUDs
Every bull market has seen a number of FUDs be it China’s Bitcoin ban and a crackdown on Bitcoin mining that originated in 2013 or Tether manipulation of Bitcoin price originating in 2017. While these FUDs are no cause of worry for crypto veterans, the new investors who joined in amid a growing frenzy often fall prey to such FUDs and panic sell in the wake of it.
Tether and Bitfinex not only offered complete audit reserves something they have avoided earlier but also settled their two-year-long lawsuit against the NYAG, thus putting rest to all possible accusations against the stablecoin issuer.