Founder of the oldest crypto fund in Europe

Vaseline4 weeks ago

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Founder of the oldest crypto fund in Europe

Cyber Capital founder slams Tether, calls stablecoins a $118 billion scam bigger than FTX and Bernie Madoff.
Executive provides insight into Tether governance and notes disclosures following recent investment in Adecoagro.
USDT is holding steady, holding its $1 level on Sunday.

The founder of Cyber Capital, the oldest crypto fund in Europe, criticized Tether for their reserves and said that there has been no audit since 2021. In a tweet thread about X, Justin Bons supports his position on at the stablecoin company with statistics.

USDT remained steady at $1 per token.

Cyber Capital founder calls Tether for audits and proof of reserves

Tether, the largest issuer of stablecoins, has been criticized by Justin Bons, the founder of Cyber Capital, one of the oldest crypto funds in Europe. Bons Labels Tether “$118 Billion Scam, Bigger Than FTX And Bernie Madoff Combined!”

Bons says there was no evidence of reserves or auditing, and the stablecoin firm is “printing counterfeit money.”

1/17) Tether is a $118 billion scam; bigger than FTX and Bernie Madoff combined!

No proof of reserves and an audit was never carried out; USDT printing fake money (fraud)

Caught forging documents, hiding identities and lying about reservations

Stop using USDT now!

– Justin Bons (@Justin_Bons) September 14, 2024

Advocacy firm slams Tether, criticizes USDT issuer

Consumers’ Research, an advocacy organization, recently expressed concern about Tether and criticized the stablecoin issuer for exposing USDT users to significant risk due to their business model.

Even as these concerns surface, Tether continues to serve as an on/off ramp for users on most cryptocurrency exchanges around the world. The USDT issuer has become one of the most profitable companies.

Tether reported a net profit of $12.72 billion as of Q4 2022. This marks a higher profit than asset management giant BlackRock.

FXStreet has reached out to Tether for comment, watch this space for updates.

Frequently asked questions about Bitcoin, altcoins, stablecoins

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any person, group or entity, which eliminates the need for third parties to participate during financial transactions.

Altcoins are any cryptocurrency other than Bitcoin, but some consider Ethereum to be a non-altcoin because it is from these two cryptocurrencies that the fork occurs. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and therefore an “improved” version of it.

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset they represent. To achieve this, the value of any stablecoin is tied to a commodity or financial instrument, such as the US dollar (USD), with its supply regulated by an algorithm or demand. The main purpose of stablecoins is to provide an on/off ramp for investors who want to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value, as cryptocurrencies in general are subject to volatility.

Bitcoin dominance is the ratio of Bitcoin’s market cap to the total market cap of all cryptocurrencies combined. It provides a clear picture of Bitcoin interest among investors. A high dominance of BTC usually occurs before and during a bull run, where investors resort to investing in relatively stable and high market capitalization cryptocurrencies such as Bitcoin. A decline in BTC dominance usually means that investors move their capital and/or profits to altcoins in search of higher returns, which usually triggers a burst of altcoin rallies.

Vaseline4 weeks ago

0 2 minutes read