Over the last 6-8 months, Tether has been under investigations in line with its flagship USDT product. Many speculators have raised their concerns lately outlining that the company failed at holding equivalent U.S. dollar reserves matching up to the large number of Tether tokens currently in circulation.
Tether and the way it is reacting to speculation
Disinformation in the cryptocurrency community many at times results in a huge deal of speculation. Word has been moving around that the issuance of Tether is what is eventually leading to escalation in cryptocurrency prices to all-time highs.
Tether seems unmoved by speculation and at the moment it is directing a huge deal of its focus in promoting transparency in its offering. The move is being applauded by market observers from around the globe who see it as a crucial addition to the expanding traditional banks and cryptocurrency market and the custodians are under immense pressure to provide top-notch services.
Pressure on Tether to conduct full audit
Interested parties have called upon Tether to move with speed in completing a full audit since that is one of the best ways to give investors reassurance in their product. But we need to be alive to the fact that this doesn’t come easy for an innovative operation such as Tether which has to deal with the various challenges that come its way from time to time in the nascent cryptocurrency markets.
Rules haven’t been established yet to oversee how audits of such operations are conducted. Apparently, most of the risk-averse large accounting firms don’t seem to be too much inclined to making engagements with the various companies focusing on cryptocurrencies at this stage.
It was in the previous year that the business guru got involved with Friedman LLP. The engagement resulted in a memorandum pointing to the fact that Tether’s bank balance at the time matched the various Tether tokens that were in circulation.
There were a lot of concerns emanating from commentators who took a serious stance that what they were being presented with wasn’t a full audit.
Friedman was out rightly providing excruciating detailed procedures for what is deemed by experts to be a simple balance sheet of Tether. These experts right away concluded that the audit was going to be unattainable in what they considered a reasonable timeframe.
It is worth mentioning that Tether sticks out as the first company to be subjected to this process as well as seek out such a high level of transparency. The shocking aspect about the whole matter is the fact that so far we don’t yet have any precedent set to offer proper guidance for the process. Aside from that it is getting rather challenging to forge forward because there isn’t any benchmark in place with which success can be measured.
It was in the previous year that the company parted ways with Friedman LLP. Since that time, the company has taken the initiative to ensure that its large number of users don’t lose faith in the USDT token.
The company has lately had an enjoyment with Freeh Sporkin & Sullivan LLP in its efforts to ensure it achieves its set objectives. The body would be entrusted with the inspection of the numbers of Tethers that were in circulation as well as the corresponding currency reserves.