Tether's market cap is close to $ 15.5 billion

by in Cryptocurrency News

Tether

The market capitalization of the stablecoin Tether (USDT) continues to rise, surpassing $ 15.4 billion this week.

The supply of digital currency is growing even amid skepticism from many analysts who doubt Tether has reserves to meet its obligations to investors.

Recently, the Weiss rating agency team posted a tweet urging traders to stop using USDT. According to analysts, another stablecoin, USD Coin (USDC), is a more reliable tool, the financial support of which is confirmed by frequent audits.

To somehow dispel doubts, Paolo Ardoino, CTO of Tether, entered the discussion.

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On Twitter, he wrote that the stablecoin developer has obligations not only to investors but also to regulators and law enforcement agencies. It is worth remembering that unlike Bitcoin, USDT is a centralized instrument.

With this statement, Ardoino commented on the recent decision of his team to freeze 33 million USDT, which were stolen from the KuCoin exchange.

After that, the company froze another 1 million coins on the Omni and Tron blockchains. Many representatives of the crypto community criticized such steps of Tether, after which the top manager recalled the centralization of the stablecoin.

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The company decides to block funds if there is a request from law enforcement or regulators and if coins are sent to irrevocable addresses (defined by Tether). In this way, the risks of fraudulent activities are minimized, Ardoino noted.