BitMEX Is Slightly Concerned About the Alleged Tether Hack
Tether is quite an interesting company with a rather dubious reputation among cryptocurrency users. BitMEX, one of the more popular exchanges, sees no issues with this company or its tokens. It is good to hear such an outspoken opinion being expressed, even though it remains to be seen if BitMEX isn’t backing the wrong horse in this regard.
Many people in the cryptocurrency world are not too sure what to think about Tether. While the company itself seems perfectly legitimate, the rate at which it issues USDT tokens is rather alarming at times. Many people have noted that the company issues more tokens whenever the Bitcoin price goes down. Whether or not there are any real shenanigans going on behind the scenes remains to be determined.
According to BitMEX, there is absolutely no reason to be concerned about Tether right now. The exchange’s team claims there is a lot of misinformation regarding Tether and its USDT tokens. More specifically, BitMEX sees no reason to doubt Tether has the necessary fiat currency and other assets to warrant the recent influx of new USDT tokens. It’s an interesting statement, although one that isn’t incorrect by any means.
Furthermore, it remains to be seen how regulatory concerns will impact the Tether company as a whole. It is possible it may face some scrutiny for issuing digitized US dollars, even though there is no official indication of that happening. Being able to convert US dollars to a tokenized version of the same currency is convenient, but it also raises a lot of questions. Most people would assume that such a privilege is restricted to the Federal Reserve, yet the latter seemingly sees no issue with what Tether is doing as of right now.
One could argue the concept of USDT on the Omni blockchain is similar to Bitcoin’s colored coin system. At the same time, pegging the value of a “colored coin” to that of the US dollar is a rather interesting approach. That’s especially true because USDT is mainly used for speculative reasons, as the token itself can only be used to invest in other cryptocurrencies which may lose or gain value in the future.
One area of concern, even to BitMEX, is that the alleged Tether Hack still remains a bit of a mystery. While the stolen funds are still frozen in place as of right now, it is evident the decision to hard fork the OmniCore client as a result of this debacle still raises a lot of questions. Users were forced to upgrade in order to retain access to specific network features. This demonstrated the degree of control Tether has over the network, which is either a good or bad sign, depending on how you want to look at things.
All of this further shows there are many aspects of Tether which people may like or dislike. Until proven otherwise, there is nothing wrong with the company or its USDT token whatsoever. Even though Tether and Bitfinex have virtually the same management, there is seemingly no reason to worry, according to BitMEX. The company would do well to undergo a proper audit to put all rumors to bed once and for all, though.