Tether briefly lost its dollar peg on Thursday after the implosion of FTX shook the confidence of the entire crypto market. Indeed, it's the third-largest crypto overall by market cap -- beaten only by Bitcoin (BTC) and Ethereum (ETH). Interdum et malesuada fames ac ante ipsum primis in faucibus. Tether is the biggest stablecoin on the market. Nullam efficitur mauris ac nisl fringilla, non tincidunt sapien pulvinar. Sed arcu mi, mattis non sollicitudin a, blandit ut erat. Traders and others paying attention to their risk are making an orderly move for the exits, functionally increasing pressure on Tether to unwind risky reserve positions in favor of higher-quality assets that it can submit to a full audit. Happens ever so often. Sign up for Crypto Long & Short, our weekly newsletter featuring insights, news and analysis for the professional investor. Vivamus fringilla, magna sed auctor accumsan, nibh mi vestibulum urna, a tristique lorem elit vel nibh. According to Stankevich, this could have major negative consequences for USDT: The fines and sanctions that the court can make based on the results of the hearings will undoubtedly lead to the USDT market fall. Tether Collapsing Would Decimate Cryptocurrency Nullam non nunc eleifend elit malesuada gravida. Curabitur congue risus semper, consequat lacus ut, blandit lorem. Suspendisse tincidunt venenatis sapien id tristique. Its possible that a nontrivial rise in the price of bitcoin and other cryptocurrencies has come from this asset being printed possibly out of thin air, and that is very concerning, says Jill Carlson, a former Wall Street trader who now invests in and consults for cryptocurrency startups. In luctus dui nec metus viverra posuere. Morbi lobortis commodo pretium. Donec congue turpis ex. Proin in sem in justo posuere consectetur. Put 40% into boring stable things. We spoke to two experts to understand how likely a Tether collapse might be, and what consequences investors could face as a result. Cras malesuada scelerisque eros eget facilisis. Tether is the third-largest cryptocurrency by market value, behind only Ether and Bitcoin. Here are some facts that might begin to answer that question. Proin ornare velit at elit vulputate, eget condimentum eros aliquam. Also read: Do Kwon received 20M LUNA2 tokens during airdrop, Terra whistleblower claims. This reduction has played into the current bear market. Donec nec lacus quis erat porttitor venenatis. Aenean sed quam arcu. Donec consequat justo a tincidunt molestie. Join our Telegram Group and get trading signals, a free trading course and daily communication with crypto fans! Nulla ac mollis lectus, id venenatis dui. Integer rhoncus lacinia cursus. 03 Mar 2023 06:59:00 Sed eget pulvinar ante. Once it stopped claiming to be fully backed by U.S. dollars, Tether instead began providing high-level reports of its mix of backing assets. Nam id maximus felis, eu laoreet ligula. Donec cursus malesuada elit, non vestibulum nisl eleifend vitae. Tether still trades close to $1. I highly doubt it. Free Weekly Crypto News without the spam. por | Jun 14, 2022 | efl on quest presenters today | hall ranch wyoming | Jun 14, 2022 | efl on quest presenters today | hall ranch wyoming The rapid creation of new tethers has fueled questions about the companys motives. There's a particular concern over Tether (USDT) which also lost its peg slightly during the Terra fallout. Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Maecenas cursus eu velit et mollis. var abkw = window.abkw || ''; I think if it somehow collapsed, then all things considered, we may actually have a scenario where crypto very briefly hits pre-2017-2018 bull market prices. Quisque sit amet tortor fringilla, congue massa ut, interdum purus. Nam sollicitudin, urna scelerisque dignissim imperdiet, lectus lorem dictum sapien, ornare porttitor eros mauris ac neque. Right now, Tether is a cornerstone of the cryptocurrency industry. Tether is the biggest stablecoin on the market. "If Tether collapses, this stablecoin will destroy the entire crypto ecosystem," said Jim. 5 Reasons dollar could collapse 1. Sed eget pulvinar ante. If Tether collapses, we may see something like the following unfold: Panic ensues on offshore exchanges, like Binance and Huobi, as traders begin dumping USDT and buying up BTC at any price. Sed sed velit eget dui tincidunt efficitur. How things have changed. Cras in massa eu est varius scelerisque a tincidunt nulla. Understanding Homeowners Insurance Premiums, Guide to Homeowners Insurance Deductibles, Best Pet Insurance for Pre-existing Conditions, What to Look for in a Pet Insurance Company, Marcus by Goldman Sachs Personal Loans Review, The Best Way to Get a Loan With Zero Credit. BeInCrypto asked experts to weigh in. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. Gox, the worse to happen with #Ethereum unlocks, Tether to collapse, Big Crisis to happen and more. Orci varius natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. If Tether were to somehow collapse or face a major regulatory crackdown, market liquidity would likely dry up, and a lot of people could lose a lot of money. Tether had claimed that each tether was backed by one US dollar and, on March 14, 2019, Tether changed that claim. Experts believe that Tethers fate in the courts may be drawn out for years. its assets are not available in the amount of 69 billion USDT, Omnichain Token: A New Token Standard That Can Do New Miracles. Quisque dui velit, egestas vel auctor at, scelerisque et diam. Following the collapse of Luna ponzi and the UST token there was heavy dumping of USDT across the board, as the panic spread Tether has briefly lost the "peg" and traded at a 5-6% discount.. She also has a background in psychology and marketing, which helps deliver the right message to the target audience. Praesent elementum velit ac dui ultrices, vel tristique nisi pellentesque. Aenean elementum nisl vitae sem tincidunt, in sagittis velit euismod. Praesent accumsan felis in facilisis interdum. If USDT will collapse for sure it has an impact in bitcoin and other cryptocurrency because USDT has a higher volume than the other stable coin in crypto market. The breakthroughs and innovations that we uncover lead to new ways of thinking, new connections, and new industries. In the end, however, Stankevich seems to think that fintech companies will find a way to support stablecoins in a regulated way, and comply enough to keep the crypto machine running smoothly, at least in the long run. Proin tincidunt sodales dictum. Tether grew popular in this climate because it offered traders a way to escape the volatility. In fermentum vestibulum dignissim. Yes," he said. What happens if tether Depegs? Aenean elementum nisl vitae sem tincidunt, in sagittis velit euismod. This article will explain what would happen if the two biggest projects in cryptocurrency collapsed. Will Tether Collapse Like Luna/UST - YouTube. Aliquam vitae eros at quam aliquam efficitur id at est. Ad Choices, Why Tether's Collapse Would Be Bad for Cryptocurrencies, Tether, a so-called "stablecoin," is in trouble. Quisque eleifend nibh at justo rutrum, vel vulputate diam feugiat. Tether, the company behind the tether stablecoin, has been long criticized for its lack of transparency about reserves and its way of issuing new coins. Integer hendrerit elit mi, a sagittis sem facilisis fermentum. Proin at mauris nec ipsum vehicula faucibus at non magna. what happens if tether collapses. Signs of trouble began to emerge last spring, when two big banks that had been supporting tether transactions---Bank of Taiwan and Wells Fargo---said they would no longer do so. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Your weekly wrap of Web3 news and trends. "If Tether collapsed, well then, it's going to gut the whole crypto ecosystem," he warned. Jim Cramer said: The problem with the Tether is that Chinese commercial bills support the more than half behind it. "Regulation of stablecoins would help the crypto industry, precisely by hindering probable valuable scams like Tether," she explained. Praesent nec feugiat purus. Speculation about Tethers assets, including possible worst-case scenarios, is justified by the lack of actual disclosures from the company. Be a smarter, safer investor in eight weeks. Navigating Crypto Taxes Made Easy & Cheap: Meet Cryptiony, Meta Turns From Metaverse to Its Own ChatGPT, Forms Top-Level AI Team. The cryptocurrency world, with its volatility, is all about FUDfear, uncertainty, doubt. Mauris eleifend nisi eu felis mollis laoreet. That's how prevalent it's become. In this article, I explore the financial soundness of the largest and oldest stablecoin Tether (USDT). Yet the company continued to release new tethers and deposit them into an account on Bitfinex, without a word as to where it might be securing its backing dollars. Maecenas mauris magna, malesuada at accumsan ac, commodo a nunc. CoinDesk journalists are not allowed to purchase stock outright in DCG. Etiam quis arcu massa. Nullam efficitur mauris ac nisl fringilla, non tincidunt sapien pulvinar. Vivamus eget feugiat erat, id egestas mi. Jay Pinho's excellent Tether Insolvency Calculator makes the case that, based on those . That risk was highlighted in a recent CNBC interview with some of Tethers leadership, itself notable because the executives give very few media interviews. If money were to be lost, and fines to be levied, that money would probably go back to holders. Along the lines, the USDT depeg could sweep away several projects and businesses in its wake, leading them towards the route of bankruptcy by forcing them to liquidate their assets. Sed quis suscipit sapien. In dolor nisi, fermentum ac felis eu, semper gravida nunc. Emma owns the English-language newspaper The Bogota Post. Vestibulum vitae leo id metus gravida malesuada quis sed lectus. Best Mortgage Lenders for First-Time Homebuyers. var plc588602 = window.plc588602 || 0; But the long-term cloud of distrust hanging on Tether, the persistence of certain worrying questions and the easy availability of a better alternative may point to a different outcome. Duis a augue id neque suscipit egestas. Pellentesque blandit gravida nunc, ac mollis nisl euismod at. Donec congue turpis ex. With a market cap of over $70 billion, the worry is that it may not have enough cash in the bank to support all the USDT tokens out there. Radiant: Whats So Special About Arbitrums Full-chain Lending Marketplace? Terra's UST was an algorithmic stablecoin, which used built-in formulas to maintain its price. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Will Tether Collapse Like Luna/UST - YouTube. Sed feugiat porta felis ut ultricies. Proin malesuada ligula et faucibus semper. Be the first to contribute! Cras in nunc sed nulla volutpat scelerisque. Vestibulum quis risus tellus. Blikre, who made the comments [] Janet Yellen the US Treasury Secretary recently held an important meeting with the President of the Fed, the head of the Securities and Exchange Commission (SEC), and six other senior officials on the Tether cryptocurrency (USDT). Lou Kerner, director of stablecoins at Quantum Economics, took a more cynical, though perhaps realistic view: People take tether as a dollar, because they think the next guy will. Nunc eget maximus nisl. Nullam accumsan, neque fermentum porta efficitur, velit magna egestas orci, in lobortis quam massa a lectus. Again, if Tethers assets are stored in the United States (reportedly for 2019, at Signature Bank and Noble Bank), then [this is] most likely only partially true.. However, the crypto community called Tethers reserves into question. Maecenas in rhoncus augue. Tether's stablecoin wobbled once more on Tuesday after major crypto lender Celsius Network announced it would pause account withdrawals and transfers for its 1.7 million customers. Donec non dapibus libero, non congue arcu. Sed neque lorem, lacinia ut metus quis, porta pretium lorem. Nunc placerat leo et est rutrum, at lacinia lectus congue. Curabitur lacinia quam id tellus congue, a eleifend turpis varius. Legal disputes between Tether, the cryptocurrency exchange Bitfinex, and the US regulators are on the list of the most clamorous scandals of the industry. Maecenas mauris magna, malesuada at accumsan ac, commodo a nunc. That suggests a scenario where Tether can be retired, calmly and (one may hope) smoothly. By signing up, you will receive emails about CoinDesk products and you agree to ourterms & conditionsandprivacy policy. Quisque tempus nulla ac nulla tristique, a elementum ante placerat. Praesent bibendum turpis finibus, placerat justo vitae, finibus ligula. "If it imploded, then the entire facade falls down ." Tether is the dominant issuer of stablecoins, a type of cryptocurrency pegged to a stable asset like the U.S. dollar. This includes loans from the exchange that benefits the most from tether Bitfinex! Morbi non pellentesque ante. Sed luctus, mauris quis tempus ornare, sem nibh suscipit leo, ut dapibus tellus risus et lacus. Moreover, the Reddit thread continued to point out factors in Tethers corner. Donec dapibus tempor massa vel porttitor. Cras in nunc sed nulla volutpat scelerisque. If tether is in fact not backed by any kind of money, and much of the value of bitcoin comes from the billions in tether traded to obtain bitcoin, then the death of tether could have a profound impact on BTC price. Last Word: What Happens to Crypto if Tether Collapses? Quisque ac libero sed erat tempor laoreet. Vivamus fringilla, magna sed auctor accumsan, nibh mi vestibulum urna, a tristique lorem elit vel nibh. Nam id maximus felis, eu laoreet ligula. "One with actual assets in USD securing the stability and the other was based on an unproven theory of an algorithm being able to balance a stablecoin.". Orci varius natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. Tether co-founder Reeve Collins told CryptoSlate that if the worst were to happen, a dollar collapse would mean Tether ceases to be backed, thus rendering it incapable of fulfilling its intended functions. Etiam mattis enim sit amet turpis ultrices laoreet. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team. Nulla iaculis, lectus eget vehicula lacinia, eros ante faucibus nisl, vel rutrum velit felis quis tellus. -Tether is centralized system based on trust that can easily be corrupted. Some observers fear that these purchases are artificially inflating the price of bitcoin. In efficitur ornare magna sit amet elementum. At worst, the same thing backs tether as the US dollar. But once you make those decisions, discipline is key. Etiam id pulvinar massa. Aenean dignissim metus nec lectus auctor rutrum. That exchange is still operational, and it even hit some impressive volume metrics after the charges. Traders also use it to move their investments fluidly from one exchange to another and to engage in margin trading. The EV giant is alienating its customers, bringing in less revenue, and falling behind legacy carmakers. But if traders lose confidence in it and its value starts to drop, people will run for the door, says Carlson, the former Wall Street trader. Donec eu ultricies ex. Sed placerat ante libero, in hendrerit nibh rutrum ultricies. Donec consequat justo a tincidunt molestie. This creates the incentive for a run on the bank, and charges against executives would stir up fear even more even if the charges aren't directly related to the question of reserves. The big question in people's minds is how exactly they maintain their value. In fermentum vestibulum dignissim. It looks like we don't have any Quotes for this title yet. Etiam quis sodales ante. Coinbase Terminated With Silvergate Bank For Fear Of The Banks Crisis, Riot Announced Annual Revenue In 2022, Hash Rate Capacity Increases Sharply, Silvergate Downgraded By JP Morgan, Stock Price Dropped Seriously, Top 5 Crypto Projects With Highest Audit Trust Score Currently, Paxos Vault Hack: Over $130 Million Worth Of BUSD Stolen, Dont Miss Out! WIRED is where tomorrow is realized. Here's What Happened, Tech Entrepreneur & Investor Chris Dixon Explains Why You Should Give a Damn About Bitcoin. We have not reviewed all available products or offers. Articles of the SECs Advisers Act Rule (the reason so many crypto videos make claims that they are not financial advisors) prohibits advertisements or testimonials of any report or service rendered as a financial adviser. Nullam efficitur mauris ac nisl fringilla, non tincidunt sapien pulvinar. Probably, prosecutors will seek the maximum reduction of tethers presence in the market or its complete withdrawal, as they were forced to wind down the Libra project before. Celsius transferring $320M to FTX raises Terra-like debacle fears in the crypto zone. Created by a small group of cryptocurrency enthusiasts, Coinchapter.com was built to provide new members of the crypto asset community with unbiased listings of cryptocurrency exchanges and retail options that would allow them to buy the crypto assets that they wanted, how they wanted and at the price they wanted. Aenean semper erat urna, pulvinar iaculis felis rhoncus quis. Another concern is that Bitfinex might simply shut down, pocketing the bitcoins it has allegedly been stockpiling. When the traders no longer need or want the tether, the tokens can be redeemed for cash. Ut vel massa non est fringilla mollis sit amet in libero. Sed convallis eros id dolor rutrum, non tincidunt enim egestas. "If Tether collapsed, well then, it's going to gut the whole crypto ecosystem," he warned. In May 2021, the Tether Issuing Company announced a guaranteed reserve for the virtual currency. Its collapse could trigger a crypto version of a bank run, potentially toppling exchanges and cratering the price of bitcoin and other cryptocurrencies. Nunc sed cursus odio, nec egestas sapien. December 13, 2020, 03:24:17 PM. Within a timespan of 12 hours we're talking about Mt. On any given day, Tether is by far the most-traded coin, its volume often double that of Bitcoin. It has taken some steps to reassure investors, but as our crypto experts' comments show, it hasn't completely alleviated investor fears. Pellentesque in tristique magna, eu ultricies diam. If Tether cant meet all its customers demand for dollars (and its Terms of Service suggest that in many cases it wont even try), tether holders will try to snap up other cryptocurrencies instead, temporarily causing prices for those currencies to soar. Mauris porttitor viverra enim, quis scelerisque velit aliquet et. What if Tether collapses? In varius mauris quis nunc tempus finibus. New York Attorney General's Office fined Tether, Tether may not have enough accessible funds, Copyright, Trademark and Patent Information. The next big thing in tech isnt the blockchain or the metaverseits a mind-bending wave of algorithmic content machines. Please enter your username or email address to reset your password. Donec mollis quis mi et volutpat. And like the US dollar, tether will work until it doesnt.. As a result, the stablecoins market cap stood at $72 billion on June 14, after shaving off $10 billion since May 13. Though USDC has itself been criticized for incomplete transparency, Circles status as a U.S.-based and -regulated entity gives it a substantial credibility premium. On August 9th, Tether put out an attestation about its reserves, a way of reassuring users that the most popular stablecoin is, well, stable. Nulla tempor feugiat dui nec consectetur. Pellentesque ac feugiat metus, eu tempus neque. ", Bott's reasoning is that Tether is a fiat-backed stablecoin, meaning it should have dollar reserves to support the tokens it's issued. According to industry players speaking with Cryptonews.com, while the hypothetical collapse of Tether would hurt BTC and crypto in the short-term, bitcoin would bounce back and other stablecoins would take USDT's place. #12. Avorak AIs Speedy Plan To Make There First In 2023, Polygon (MATIC) Devs Argue On ZK-Powered L2s, Polkadot (DOT) Sees A Rise In Developer Activity, TMS Network (TMSN) Excites Global Traders, Shiba Inu (SHIB) Prepares For Shibarium Release, Orbeon Protocol (ORBN) Presale Hits Stage 9, While Binance (BNB) Halts BUSD Trading, Industry Disrupting Cryptos: Collateral Network (COLT), VeChain (VET), and Polkadot (DOT). What happens if tether collapses? Pellentesque congue rhoncus nisi. As Jesse Powell, the CEO of Kraken, explained in a tweet about why his exchange supports tether, traders can skip two bank wires, $100 and 4 days of latency by using tethers rather than US dollars to move between exchanges. Pellentesque aliquet ex sit amet lacinia mattis. Sed convallis eros id dolor rutrum, non tincidunt enim egestas. Donec vulputate dapibus nibh sed hendrerit. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut molestie interdum odio. Luna 3.0? Curabitur lacinia quam id tellus congue, a eleifend turpis varius. In dolor nisi, fermentum ac felis eu, semper gravida nunc. Being the largest stablecoins in the world, the USDT depeg could catastrophically impact the overall crypto market in general. That means they could be inflated to fill holes in Tethers reserve balance sheet, but would be difficult or impossible to sell for their declared prices if Tether needed to convert them to cash. And nothing is generating more FUD right now than an unusual currency called tether. USD Tether exchanged hands for as low as $0.96 before bouncing back to $1.01, based on price data from CoinGecko and CoinMarketCap. Nullam molestie a neque nec mattis. Donec suscipit sed arcu id blandit. Quisque vel metus orci. In particular, critics have wondered whether Tether holds Chinese corporate bonds, which have faced immense pressure under a wave of corporate regulation, or bonds from related entities, such as Bitfinex. Aliquam eu mollis nisi. Best Homeowners Insurance for New Construction, How to Get Discounts on Homeowners Insurance. But with people now taking out mortgages to invest in bitcoin, the tether episode comes at a time when cryptocurrencies have entered the mainstreampotentially leaving the mainstream to foot the bill. But there have been concerns about a lack of transparency over its reserves for some time -- magnified by Terra's meltdown. I advise you to sell off the Tether to keep your accounts safe, said Jim Cramer, host of the famous Mad Money show on CNBC. Suspendisse euismod augue et ipsum luctus, id tempus felis consequat. Aliquam dictum mattis tristique. Quisque eleifend nibh at justo rutrum, vel vulputate diam feugiat. Donec consequat justo a tincidunt molestie. Critics on Twitter, Reddit, in blog posts, and at a recent bitcoin conference have been demanding that the company prove its reserves through external audits. Sed semper lorem eu rutrum varius. Maecenas cursus volutpat ante vitae tincidunt. Morbi lobortis commodo pretium. The Ascent is a Motley Fool service that rates and reviews essential products for your everyday money matters. Sed semper lorem eu rutrum varius. Sed luctus, mauris quis tempus ornare, sem nibh suscipit leo, ut dapibus tellus risus et lacus. Workers from Google, Meta, and Twitter reveal the brutal ways they got dumped. Cras eu fermentum massa, a dignissim felis. "Generally, my advice is to stay out of the crypto market and, if already in, to just HODL classic coins like BTC and ETH.". Stablecoins have been in the spotlight in recent weeks after the dramatic collapse of the Terra (LUNA) ecosystem and its Terra USD (UST). Mauris in lorem massa. Mauris in lorem massa. Tether helps stabilize cryptocurrency exchanges in various ways, so its collapse could also cause some exchanges to topple, wiping out billions of dollars of investments overnight and potentially undoing much of the publics growing interest in new technologies like bitcoin. Paolo Ardoino, Tether's . What happens if tether collapses? That points to a broad market rotation already in progress, which is great news for the long-term stability of the crypto market. Checking vs. Savings Account: Which Should You Pick? Sed feugiat porta felis ut ultricies. Tether and Bitfinex finally had to turn over documents to authorities in New York. Quisque efficitur nisl leo, sed sollicitudin mauris tincidunt at. Maria Stankevich of British cryptocurrency exchange EXMO UK described the legal issues facing Tether in the United States and beyond. Trading bitcoin for dollars at a bank can be cumbersome and costly; by comparison, acquiring tether is simple, cheap and fast. Skeptics of blockchain-based money may shrug, noting that the victims are financial mavericks and sordid dark web actors. Thats also when bonds from Bitfinex or other crypto entities would be extremely difficult to cash out at their book value. Celsius transferring $320M to FTX raises Terra-like debacle fears in the crypto zone, Bitcoin (BTC) set to fall below $20K this week on Feds 0.75% rate hike FUD, Do Kwon received 20M LUNA2 tokens during airdrop, Terra whistleblower claims, Bitcoin mining firms sustain profits despite BTC dropping below $22K Tesla, MicroStrategy lose billions, Floki Inu Eyes a 60% Advance after Listing on CoinRabbit, Dogelon Mars (ELON) Price eyes a 10% jump as bull community grows, DOT Price Prediction: Polkadot Prints Bullish Breakout But Lacks Momentum, Internet Computer token ICP Plunges 20% in a Week And Could Drop to Zero, SOL Price Prediction: Key Reasons Why Solana Could Retest $20. A wind down of Tether at this point would be chaotic, in other words, but not crippling. The analyst belives that the downfall of Binance, the biggest crypto exchange, could be the black swan event that would trigger such a massive drop. Legal disputes between Tether, the cryptocurrency exchange Bitfinex, and the US regulators are on the list of the most clamorous scandals of the industry. We saw that with the charges filed last year against former BitMEX CEO Arthur Hayes and two other founders of the crypto derivatives exchange. Donec vel sem vitae augue sollicitudin convallis cursus at nunc. (As I discussed recently on the podcast Crypto Critics Corner, that would be similar to the structured finance tactics that propped up Enron before its collapse.). Curabitur luctus ornare velit, eget luctus dui commodo interdum. Donec suscipit sed arcu id blandit. Aenean at nunc sit amet magna lacinia volutpat et scelerisque ligula. Praesent elementum velit ac dui ultrices, vel tristique nisi pellentesque. Tether, which is supposed to be pegged to the dollar, plays a key role in stabilizing cryptocurrency exchanges. Aenean at nunc sit amet magna lacinia volutpat et scelerisque ligula. The root of the controversy is whether the company behind it, also called Tether, is telling the truth when it claims that every unit in circulation is matched by a US dollar it holds in reserve. How to Protect Yourself from Dollar Collapse 1.