NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: LINK Price Climbs Following Chainlink's Deal With US Commerce Department, Eyes $30
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: LINK Price Climbs Following Chainlink's Deal With US Commerce Department, Eyes $30

The Tether Mafia Control 80% Of Supply, Should Investors Be Concerned?

Samuel Wan
Samuel Wan
6 years ago
2 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Critics of cryptocurrency have long accused the industry of collusion. And a recent article from Bloomberg, about the “Tether Mafia” controlling the supply, has done little to allay these fears.

According to Coin Metrics, there are 318 addresses with a Tether holding of $1 million or more. And in total, these accounts make up $3.3 billion, or 80%, of the total Tether supply.

Tether Controversy

Since its launch in 2015, Tether has been subject to numerous controversies. All of which come down to the organization’s transparency in their dealings, chiefly their actual USD reserve holdings.

And despite the admission of a sizeable shortfall in USD reserves and the on-going investigation by the New York Attorney General (NYAG), Tether transactions continue to make up a fair chunk of total daily volume. And it remains to this day the number one stablecoin by a significant margin.

Steven Ehrlich, COO at the Wall Street Blockchain Alliance, considers Tether be to like Teflon. In that, regardless of what controversies come up, nothing sticks. This, Ehrlich believes, is down to:

“…the fact that traders have not had latency or slippage moving in and out of positions and there has been enough evidence produced over the last 12 months to suggest that even if Tether was not 100% collateralized, it was not far off.”

What Would Happen If USDT Disappeared Tomorrow?

The question is, can, and should traders continue to ignore the risk. Especially so considering that a single entity can hold more than one address. Meaning the scope for market manipulation, by the “Tether Mafia,” is higher than the data suggests.

And while the NYAG has yet to report anything definitive, should they find indisputable evidence of Tether/Bitfinex fraud, there is no doubt that Bitcoin would suffer. And by extension, so would the rest of the cryptocurrency market.

In a worst-case scenario, one commentator sees a collapse of the entire market. With traders exiting en mass to minimize losses. He said:

“If the shock is sufficiently bad, it would be reasonable to expect a repricing of assets that could take valuations back to 2016 or 2015 levels.”

However, others take a more pragmatic view. Analyst, Sylvain Ribes believes that investors would be wise to consider the possibility of authorities shutting down Tether. But even if this happened, investors should not be fearful of the aftermath.

This is because Tether’s liquidity impact on Bitcoin has been greatly exaggerated by mainstream outlets, including CoinMarketCap. Ribes said:

“For indeed Bitcoin’s liquidity is widely distributed beyond USDT, and, as importantly, among exchanges, ensuring that the market would remain structurally similar and sound.”

As such, while prices may tank in the short-term, Ribes does not expect a single player to affect the entire market now, unlike in the days of MT. Gox. He concluded:

“Tether’s smothering hold on Bitcoin’s liquidity proves to largely be a fantasy.”

Image via Unsplash; Photo by Vladimir Solomyani

Tweet123Share210ShareSend
Samuel Wan
Samuel Wan

Samuel Wan

Samuel Wan is passionate about different cultures and eating good food. He has years of experience working in business and finance — a burgeoning interest in Bitcoin and cryptocurrencies since 2017. UK based.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

WLFI

WLFI Token Begins Trading: Insights Into The Trump-Backed Crypto

World Liberty Financial, a decentralized finance (DeFi) platform supported by President Donald Trump, has officially launched its native token WLFI....

Ronaldo Marquez 7 hours ago
gouvernement-americain-publie-donnees-pib-blockchain-bitcoin

Le gouvernement américain publie ses données de PIB sur la blockchain Bitcoin

Août 2025 restera comme une date à part. Pour la première fois, le gouvernement des États-Unis a choisi de graver...

guillaumev 9 hours ago
Dogecoin

Dogecoin Price Risks Crash Below $0.1, But Can Bulls Facilitate This 800% Rally To $1.82 First?

New technical analysis suggests that the Dogecoin price is teetering at a pivotal point that could dictate its trajectory for...

Scott Matherson 11 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Ethereum, ETH, Crypto

No Ethereum Rally Until Q4? Analyst Eyes Choppy September Before New Highs

Rubmar Garcia 2 hours ago
solana-reserve-slowdown-funds-shift-to-emerging-crypto-stocks-tw

Solana儲備機構擴張遇冷:資金轉向新興低價加密股押注成市場新焦點

Peter Chow 4 hours ago

SPX6900價格上漲3% 僅剩2天可抄底TOKEN6900搶佔10倍Launch收益

estherw 5 hours ago

Premium Sponsors

Press Releases

  • LinkLogis Partners with XRP Ledger: DOT Miners Create Up to...

    8 hours ago
  • Arthur Hayes 3 altcoint fedez fel 100-szorosra 2028-ra

    Arthur Hayes 3 altcoint fedez fel 100-szorosra 2028-ra

    9 hours ago
  • Następny Meme Coin 100x w przedsprzedaży? PEPENODE może przyćmić Pepe w 2025 roku

    Następny Meme Coin 100x w przedsprzedaży? PEPENODE może...

    10 hours ago
  • Arthur Hayes odhaluje 3 altcoiny na 100× do roku 2028

    10 hours ago
  • Предварителна продажба на следващия 100× мемкойн? PEPENODE може да засенчи Pepe през 2025 г.

    Предварителна продажба на...

    10 hours ago

Newsletter

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.