Within the world of cryptocurrencies, stablecoins occupy a special place as the product that tries to reconcile the best of fiat money, with the capabilities of normal crypto assets. This is achieved by anchoring its value to another asset that allows it to maintain its stable price over time.

In this way, according to the defenders of these currencies, the characteristic volatility of cryptocurrencies is avoided, and investors in stablecoin are granted the security provided by a reserve fund in the asset used as backup.

Among the stablecoins currently on the market, <a href="https://coinmarketcap.com/currencies/tether/">Tether (USDT)</a> is undoubtedly the most famous, being the first of the stablecoins by market capitalization, reaching $4 billion dollars compared to the $2 billion it had just a year ago.

Tether's strength is in the 1: 1 parity that it maintains with the US dollar, which has led it to be the main currency used in the transactions of two of the world's largest cryptocurrency exchanges, Binance and Huobi.
<h3>Tether May Not Have Enough Reserves Reveals Co-Founder</h3>
However, Tether has been embroiled in a scandal due to the statements of William Quigley, a co-founder of the company.

According to a tweet from popular crypto influencer Lisa, Bramowicz,  Quigley alleged that it did not interest many whether Tether has a reserve of dollars to support the value of the coin.  He revealed that so long that people believed that the currency is worth a dollar all is well.

" <em>A co-founder of Tether says it doesn't really matter if stable coin is backed by the exact amount of dollars if investors believe that each currency is worth 1 USD,</em> " Bramowics wrote in a tweet.

This revelation is damning for Tether, whose critics have always argued that <a href="https://www.cryptoknowmics.com/crypto/are-stablecoins-worthy-investment-assets/">the stablecoin</a> does not have enough in reserves to back their claims of parity for the cryptocurrency.
<h3>More Companies Have Begun To Develop Stablecoins</h3>
Bitfinex investor Zhao Dong announced the launch of two stablecoins that will be backed with gold and crude oil. Popular crypto exchange Binance has also revealed plans to launch its USD backed token BUSD which has been approved by the United States financial regulatory agencies.

Tether remains the biggest stable coin and it will be interesting to see whether these statements by Quigley will affect the market. Since Tether is the most used coin by investors in Asia when trying to purchase and transact other currencies.

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Tether Involved In Scandal Over Co-Founder's Statements

I am olowoporoku adeniyi, writer, editor and crypto evangelist, with five years experience in the Blockchain industry.

Tether Involved In Scandal Over Co-Founder's Statements

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