TL;DR Breakdown
- Tether submits paperwork as the world awaits verdict.
- Stablecoins are here to stay irrespective of Tether USDT’s fate.
- Kerner’s is pessimistic about the outcome.
Tether and Bitfinex have eventually delivered their paperwork to the New York Government. Their deadline was prolonged for them to turn over their financial paperwork for cross-check by the magistrate. The world’s third digital currency will go down the drain if the regional attorney finds evidence of fraud. Such occurrences could have a reverberating effect on the world of cryptocurrency. The paperworks have been delivered and the world awaits what the outcome would be.
The downfall of Tether USDT
Maria Stankevich said that the world of cryptocurrency has a strong desire for blood. Stankevich is a business developer and officer at British crypto exchange company based in the United Kingdom. The UK-based business developer stated that the downfall of USDT will have a staggering consequence on the cryptocurrency market at large. She also stated that this will not spell the end of stable coins.
Stankevich explained that the downfall of USDT is feasible. She also said that Tether will face a worse aftermath if the plaintiff uncovers any evidence of fraud. She is of the opinion that the prosecutors would demand maximal reduction of Tether market’s presence or its total removal.
She later condemned the overly regulated stability act presented by the Congress. She was of the opinion that fintech firms would look for a means of siding with stablecoins in an organized manner.
Kerner’s pessimistic approach
Lou Kerner, the Director of Stablecoins at Quantum Economics gave a rather pessimistic but realistic insight into the matter. He said people view the asset as a dollar because they are of the opinion that every other person would. She painted the worst case scenario to be that USDT ends up like the dollar.
Just like Stankevich, Kerner also stated that Tether may go down but it will not be the end of all stablecoins. He acknowledged the fact that the Bitcoin price is being manipulated as institutions pour large amounts into Bitcoin. He also stated that if the crypto asset does not have that kind of backing, then its end may have a strong effect on Bitcoin value.
