Quicktake
Why Crypto Traders Are So Worried About Tether
Crypto Exchange Bitfinex, Tether Are Said Subpoenaed by CFTC
This article is for subscribers only.
It’s one of the most hotly debated questions in the world of virtual currencies: Is Tether telling the truth when it says that each of its digital tokens is backed by one U.S. dollar? News on Jan. 30 that American regulators are scrutinizing the company has given fresh ammunition to the skeptics.
It’s an issuer of a cryptocurrency with an unusual twist. Unlike Bitcoin, whose value fluctuates wildly from day to day, Tether’s tokens are designed for stability. Prices for the coins have stayed near $1 because Tether says each one is backed by a dollar in its bank accounts.