Stablecoins and DeFi SynergyTether’s rise—and more generally, stablecoins as a whole—coincides with the rise of the DeFi market, which has seen hundreds of millions of dollars poured in since the start of the year. Currently, the Compound Finance platform shows that $84 million in USDT has been supplied. DeFi protocols have persuaded investors to deposit their funds and receive higher than average returns, which has, in turn, encouraged investments in stablecoin assets.
Tether Grows in Use, Even Amid CriticismTether’s growth is undeniable, even as it has faced criticism for various reasons over the years. The heaviest criticism relates to what the cryptocurrency community says is inadequate proof that each of its tokens is backed by equal dollar reserves. Tether has published the results of an audit in response to these inquiries, but the audit was conducted by a law firm as opposed to an accounting firm, which left the cryptocurrency community unsatisfied. Bloomberg also published a report that stated that it had seen bank statements that proved that Tether had enough foundations to back its token supply, but doubts still linger among investors. Tether has also come under fire for its frequent minting of tokens. 200 million USDT was minted on June 2, and several other occasions since the start of April have seen Tether mint tens of millions of new USDT.
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