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Highlights
- The Hindenburg Research is offering a US $1 million bounty for anyone who can provide information on Tether's reserves.
- The US-based research firm stated that it doubts the legitimacy of Tether.
- The Tether bounty program has just added to the worry of Tether as it was earlier slapped with a US$41 million fine by the Commodity Futures Trading Commission.
Stablecoins have been under the radar of the authorities and regulators for some time now. Many have questioned how stable they are, especially Tether, which has often been considered the most ''unstable'' of all. Many have often questioned the legitimacy of the Tether, and despite it releasing a report in February 2021 stating that cash reserves fully backed them.
However, the New York Attorney General (NYAG) didn't feel otherwise and ordered an investigation. It found Tether guilty and issued Tether a US$18.5 million fine for the transgression and banned them from operating. Now another research firm has questioned the legitimacy of Tether, and in its report, has suggested that the leading stablecoin represents a growing threat to investors.
Tether Bounty Program
The Hindenburg Research is offering a US $1 million bounty for anyone who can provide information on Tether's reserves. The US-based research firm stated that it doubts the legitimacy of Tether, and it is for that they announce the Hindenburg Tether Bounty Program for details on Tether's backing. Before receiving a bounty, the individual or the group is expected to go through the thorough validation process, backed by thorough cross-checking checks.
Also read: Why is Loopring Token grabbing eyeballs?
Will the $1M bounty add to Tether's headache?
The Tether bounty program has just added to the worry of Tether as it was earlier slapped with a US$41 million fine by the Commodity Futures Trading Commission for giving false statements about its fiat-backed reserves.
Even though Tether settled the claims but maintained that there is no definite proof that Tether tokens were not fully backed ones, the forensic research firm observed that there is no company that openly supports Tether, despite it being one of the most extensive commercial powers, there is no major company openly supports it. Hence, the functionality of it as the best Stablecoin is questionable.
Also read: Is Metahero Crypto the real HERO at present?
Will the bounty help?
Well, the bounty is just an addition to the never-ending trials of Tether. The question is whether it is genuine or not? Tether, with its history of fines and reports, has impacted its market reputation, and the Hindenburg Research will make more and more people raise eyebrows against the Bitfinex-backed stablecoin.
The Tether has its tasks cut out and has proved a number of times whether it is a legitimate stable coin or not. Now, it needs once and for all to settle the argument by coming out clean on the current controversy.
