Peter Schiff accused Tether of manipulation following the crypto firm’s recent Bitcoin purchase. The renowned economist stated that the firm printed firm out of thin air to buy BTC. He also claimed that the USDT used to make these Bitcoin purchases was not backed by anything.
Peter Schiff’s target is now Tether: He accuses it of manipulation!
As you follow from Kriptokoin.com, Tether made a large Bitcoin purchase. In reaction to this move, Peter Schiff accused the USDT issuer of ‘further manipulation’. He stated that the crypto firm is simply creating USDT ‘out of thin air’. He also noted that it was using it to buy Bitcoin. The renowned economist also described this USDT issuance as a quantitative easing (QE) version of Tether. He added that this would not be a good end for Tether or Bitcoin.
How true are the claims?
USDT issuer Tether recently added 7,629 BTC to its reserve. This triggered Schiff’s remarks. The crypto firm currently holds $7.68 billion worth of Bitcoin. Meanwhile, Schiff’s accusation that USDT was created out of thin air is unfounded as the stablecoin is backed by USD and other Tether reserve assets. The firm also publishes independent audit reports of its reserves.
However, Peter Schiff still seems convinced that there is some form of manipulation in the USDT minting. In another X post, he stated that, by definition, the USDT that Tether uses to buy is backed by nothing but the BTC it acquires as a result of the purchase. It should be noted that Schiff also criticised MicroStrategy’s $209 million purchase of Bitcoin. He claims that the software company is no longer buying enough BTC to keep the price rising.
Is Tether adding to FUD?
Peter Schiff’s statements about Tether add to the FUD surrounding the stablecoin issuer. A lot of nasty comments have surfaced about the crypto firm’s imminent exit from the European Union (EU) region. Amid this development, USDT’s market capitalisation dropped by $2 billion. Tether’s CEO Pablo Ardoino addressed the FUD by stating that competitors are only trying to make market participants believe in things that don’t exist.
In a recent X post, Arduino noted that the hordes of paid shills who have continued to attack Tether for years are the same ones who continue to attack Bitcoin to promote some alternative ‘useless technology’. He added that Bitcoin and Tether are standing in front of them, but together they are unstoppable.
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