Peter Brandt, Willy Woo Issue Dire Warning On Tether (USDT)

Prominent investor and crypto analyst Peter Brandt expressed grave concerns about the future of Tether (USDT), a major stablecoin in the cryptocurrency market. The discussion was sparked by a post from Consumers’ Research, a non-profit organization. The organization spotlighted several allegations against Tether.

Peter Brandt On Tether

Consumers’ Research criticized Tether for allegedly misleading the market about its U.S. dollar backing and receiving a high-risk rating from S&P. Moreover, it highlighted that Tether refused to undergo a rigorous independent financial audit. Brandt, known for his critical stance on X, quoted the Consumers’ Research post and offered his opinion.

Brandt stated, “Interesting perspective. My contention for years is that Tether is headed eventually for disaster. I agree with this all. The $USD will eventually meet its demise, but years after the same is experienced by Tether.”

Moreover, Brandt’s assertion highlights long-standing concerns about Tether’s transparency and financial stability. Tether has faced scrutiny and legal challenges over its claims that each USDT is backed one-to-one by U.S. dollars held in reserve. Hence, critics argue that the company has not provided sufficient evidence to substantiate these claims, fueling skepticism in the market.

Adding to the debate, Bitcoin maximalist Willy Woo offered a counterargument to Brandt’s grim forecast. Woo pointed out that Tether has defied predictions of its demise for the past decade. He noted, “Tether was meant to die every year in its 10 years of operation. At least as old as ETH, BTC is 15 years old and both got to robust scale at around 10 years.”

Furthermore, Woo suggested that Tether’s longevity and adaptability could help it survive even amidst significant market changes. In addition, he argued that Tether is evolving towards over-collateralized assets that could outperform traditional low-yield securities such as Treasury Bills. Moroever, Woo highlighted the potential for Tether to pivot towards assets like Bitcoin and gold. He believes such a move could offer greater stability and value retention.

Also Read: Big Stablecoin Prediction Issued By Circle Founder Jeremy Allaire

Illicit Transaction Allegations

Earlier this week, Will Hild, Executive Director at Consumers’ Research, highlighted that the stablecoin is being utilized by Russia and other nations to sidestep sanctions. This follows previous allegations made against Tether in the aftermath of Hamas’ October 7 attacks on Israel. Moreover, the Israeli government recently froze approximately 100 Binance accounts, while Tether froze assets valued at $800,000.

In a post on X, Hild stated, “It’s been used by Russia to avoid monetary sanctions, it’s been used by countries like Venezuela, and then it seems to be being used by human traffickers… Last year Tether was linked to nearly 20 billion in illicit transactions. Tether has also been used by Hamas, Al Qaeda, ISIS, and others, with known terrorist-linked financial transactions in the millions.”

Furthermore, Hild further suggested that Tether is involved in criminal activities, drawing parallels to the downfall of FTX. In addition, the association of crypto assets with illegal financial operations continues. Hence, authorities are attempting to curb such operations.

Also Read: Tether Faces Renewed Terror and Illicit Finance Allegations