Should Tether’s Bitcoin Buying Plans Concern?[Column]| coindesk JAPAN | Coindesk Japan


Tether, the issuer of the #1 market cap stablecoin Tether (USDT), recently announced that it would use its surplus profits to “continuously” buy Bitcoin (BTC) to boost its reserves. Earlier, Tether released a surprisingly complete assurance report (by BDO Italia, the world’s leading accounting firm), which indicated that the number of Tether’s USD reserves was enough to cover all of its issued USDT.

This raises the question: Should Tether’s Bitcoin buying plans concern us? Tether has a long history of providing transparency for its users, so it is reasonable to assume that their intention is to diversify their reserves and strengthen their ability to back their USDT. In addition, the fact that Tether is now buying Bitcoin with its profits is a show of confidence in the leading digital currency. This, in turn, may attract more investors and bring more liquidity to the market.

On the other hand, the lack of regulations in the crypto industry and the uncertain future of Tether’s business model can be a cause for concern. The fact that Tether is the issuer of the #1 market cap stablecoin also means it has a lot of power in the market. The possibility of Tether manipulating the market to benefit its own position can not be ruled out.

In conclusion, Tether’s Bitcoin buying plans should be monitored but it is too early to draw definite conclusions. The transparency measures taken by Tether do provide some assurance, but until the industry matures, there is still a risk of potential manipulation or market manipulation.

Robert Wilson
Robert Wilson author

As the overseer of NicheBot's editorial content, I am committed to ensuring that all information published on our website is both accurate and relevant to our readers. My fervent support for the crypto industry has led me to closely monitor the developments within it since 2012, and I have contributed extensively to discussions and debates surrounding the world of Bitcoin.

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